Telstra Hikes Mobile Plan Prices, Cuts Workforce by 10% Amid Cost-of-Living Criticism
July 10, 2024Telstra announced price hikes for its mobile plans, targeting wealthier customers while aiming to keep plans affordable for others.
Price increases range from $2-4 per month, impacting premium plans the most, with some prices reaching $99 per month.
Basic, essential, and bundle plans will also see increases, while starter plans remain unchanged but offer more data.
The Large Data Plan will be discontinued, and the Telstra Top Up program will now cost $180 for 70GB of data.
These changes are designed to maximize revenue without losing customers to competitors, following similar moves by Optus and Vodafone.
Telstra's CEO announced a 10% workforce cut, focusing on the enterprise unit facing challenges from internet-based services.
Despite criticism, analysts predict minimal impact on customer churn rates, and Telstra's shares rose over 3% in early trading.
Critics argue the price hikes are unjustified given ongoing cost-of-living pressures, but Telstra defends them as necessary for technology investment and meeting customer demand.
Summary based on 4 sources
Get a daily email with more Tech stories
Sources
The Sydney Morning Herald • Jul 9, 2024
Telstra lifts prices amid cost-of-living crunchThe Sydney Morning Herald • Jul 9, 2024
Telstra must get pricing pain right to prevent a customer revoltYahoo News • Jul 9, 2024
Telstra hikes prices for customersThe West Australian • Jul 9, 2024
Telstra’s inflation-busting price hikes hit battlers hardest