Telstra shares lift after mobile plan price hikes
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More news: Shares in Telstra were up 2.2% to $3.73 after Australia’s top telecoms firm said it would raise prices on postpaid mobile plans from 27 August and on prepaid plans from 22 October. Prices are set to lift by $2 to $4 per month, implying a 4% to 5% increase.
Telstra to increase mobile plan prices
The news: Telecoms giant Telstra says it will increase prices for its postpaid and prepaid mobile plans in coming months, citing strong consumer demand and continuing investments to manage technology evolution.
The numbers: Telstra said it will raise prices on postpaid mobile plans from 27 August and on prepaid plans from 22 October, with prices to lift by $2 to $4 per month.
The context: The move by Australia’s top telecoms firm comes after it announced the removal of inflation-linked annual price review in May, raising speculation of impending price hikes.
Telstra said on Tuesday it balanced cost of living pressures on some customers with the need to invest in technology evolution while raising prices.
It said traffic on its mobile network continues to grow at 20% a year, with the company investing $1.3 billion in mobile spectrum in FY24 to manage this demand.
In May, the telco earlier announced major organisational changes and job cuts within its enterprise business, as part of new CEO Vicky Brady’s efforts to boost earnings.
The source: ASX announcement
