Source: Unsplash/Akshay Chauhan
If you're on a Telstra business SIM plan, we've got bad news for you: the telco's new price increases will affect all business plans, resulting in a price increase of between $3 and $4.
Telstra has announced that it will increase the prices of its postpaid plans from August 27th, followed by an increase in the prices of its prepaid plans from October 22nd.
How much does Telstra's business plan cost?
The price changes also include business plans, which will see an increase of 4.2% to 4.8% depending on the plan you subscribe to.
The Basic plan will increase from $62 to $65 per month, the Essential plan will increase from $72 to $75, and the Premium plan will increase from $95 to $99. Prepaid plans are also being adjusted, with the $35 plan increasing to $39.
Telstra group executive Brad Whitcomb said in a blog post that the company needed to invest in mobile coverage, performance and security to keep up with growing data usage and maintain its position as Australia's largest mobile network.
“It takes a lot of effort and cost to run a large mobile network like ours, but it takes even more effort and cost to keep up with the increased usage of our network,” Whitcomb said.
Telstra reported net profit of $2.1 billion for the 2023 financial year, up slightly from $1.9 billion in the 2022 financial year.
The increase follows Optus increasing its prices for new customers in May, followed quickly by news that most existing customers would also be moved onto new, more expensive plans in June.
Still, price hikes are nothing new for Telstra: last year the company implemented a Consumer Price Index (CPI)-linked price increase that increased prices by $4-5.
At the start of 2024, Telstra announced it would withdraw from the CPI-linked price review, causing its shares to fall 7.6%.
Shares rose 2.2% after the price change was announced on Tuesday.
“This change simplifies our pricing approach and makes it more consistent across our products and services. It also reflects the many different factors that go into pricing decisions,” Whitcomb said.
Telstra said increasing the price of its plans will allow it to “continue to invest in mobile coverage, performance and local support, as well as continuing to invest in improving the security of our service.”
The current price increases are coming amid wider economic pressures, with the cost of living (and the cost of doing business) in Australia rising significantly.
Telstra acknowledged the potential difficulties, pointing to support options such as flexible payment plans and account reviews.
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