Telstra announces price changes
Filed under: Access for Everyone, business, consumer, fixed line, Mobile, pricing
Some customers will soon be receiving letters about changes to their fixed line and mobile pricing plans, which take effect from October 1st 2012.
Importantly, there won’t be any changes to HomeLine Budget access fee prices for low income customers, or our Pensioner Discount scheme.
We know there’s never a good time to make changes to prices but, like all companies, we need to periodically review our prices to ensure they reflect the cost of running our business.
Some of these fixed line prices have been unchanged for nine years, meaning they’ve fallen by more than 19 % in real terms (when adjusted for CPI).
At the same time, we’ve invested billions of dollars in what are recognised as Australia’s best networks. For example, we’ve spent more than $3.5 billion on our Next G mobile network, plus our investment in upgrading to 4G, at the same time as traffic doubles each year.
We completed about 5,000 capacity upgrades in 2011/12 and upgraded over 1,000 sites with 4G technology. We plan to do about 50% more again (1.5x) in 2012/13, recognising the need to continue to increase the investment to ensure our customers maintain access to a world class mobile network.
So what is changing?
The main changes for fixed line customers are:
- Access fees are increasing on half of our HomeLine plans. We are not making any change to our Bundles access prices.
- The price of local calls in most plans has not changed in nine years; however, from 1 October three of our HomeLine plans (Complete, Plus and Advanced) will see an increase of 2 cents per call, with the other HomeLine plans remaining unchanged.
- Calls to 13/1300/1345 numbers from fixed line services will increase from 30c to 35c for all Telstra customers. These have not increased since 2008 and, importantly for many of our mobile customers; the cost for 13 numbers is included in their monthly call allowance. Calls made from Telstra services to Telstra customer service numbers, such as 132200, 132203, 132000, 132999, 133933, 137663, will remain free.
- Our 0018 Easy Half Hour international calling service will be removed from 1 October. A small number of customers use this service these days, with other options now available such as International Value Packs.
- There are also changes to Business fixed line plans, including amonthly access increase for our not-for-profit and charity customers, which have not seen a change for ten years.
The main changes for mobile customers are:
Member, Phone and Casual mobile plans will change from 30 to 60 second block charging, making them consistent with the rest of our mobile plans. For example, a national voice call currently calculated at 50c per 30-second block, will now be charged at $1.00 per one-minute block, plus the applicable call connection fee.
There are also changes to some of our fixed, mobile and ISDN business plans.
Whilst an ACCC report released just last month noted, ‘average real prices for all telecommunications services decreased by 6.0 per cent in 2010−11, and were 17.9 per cent lower compared to 2006−07’, we understand these changes will impact each of our customers differently.
Telstra continues to provide a range of measures to improve the affordability of telecommunications as well as providing benefits of more than $190 million into programs in the community in the last financial year; including:
- InContact® service, now with nearly 80,000 customers; and
- Pensioner Discount Scheme – 1.154m people benefited from this last year.
This year also marks the tenth year of our Access for Everyone programs, which assists low income Australians and Australians in crisis to stay connected. Since 2002, we have provided benefits to the value of 2 billion dollars to people on a low income in Australia. Last year Access for Everyone provided special concessions for more than 1.2 million low-income households, rebates on Telstra bills for around 2,600 financial hardship customers every month, and distribution of around 112,000 phone cards through 356 community agencies.
Want to discuss the best plan for you?
If you have concerns regarding how these changes will affect you or want to check whether you are on the best plan for your needs, you can see all the plans at telstra.com, or call one of our customer service consultants on 132200.
Just a reminder that not all of our customers are affected by these changes. Those affected will receive a letter within the next month explaining the changes in more detail..
In the meantime, more detail can be obtained by visiting telstra.com.au/recent-changes
“Member, Phone and Casual mobile plans will change from 30 to 60 second block charging, making them consistent with the rest of our mobile plans. For example, a national voice call currently calculated at 50c per 30-second block, will now be charged at $1.00 per one-minute block, plus the applicable call connection fee”
Is that a 100% increase for a 20sec call?
Outrageous – so much for technology driving prices down. I see this rise as nothing more than a profit grab. Compared to other places in the world we pay ridiculous prices for basic telephony services & data. The sooner there is real competition in the sector the better. It really is time to look for another provider methinks.
No Commercial Business is a Charity – Agreed.
In the Bush, for the last 30 odd years, there has been NO INCREASE in the RELIABILTY or the AVAILABLE servics for my subscription for a Basic Telephone Service.
It always has been a BASIC service. We can’t get CND, We Can’t get Multiple number, We CAN’T get ADSL, we CAN’T get Mobile Coverage.
FAULTS still occur round the same time of year with the weather. (We’re used to that. We can’t expect the Weather to be stopped from being itself. It’s beyond Telstra’s control)
What we do Whinge about though is that there has been NO INCREASE in the capacity and capability of our Fixed Network Telephone Service. It always *has* been a BASIC telephone service, and STILL IS just a BASIC telephone service. But still, every price increase announced, the arguement is “You live in the Bush. It costs more than what you pay to maintain that network out there”
WHY should we pay MORE for the SAME as we’ve had for the last 30 odd years? Why should the Metro Counterpart all enjoy advances in Technology while the bush misses out (again).
People in the CITY (Or even the town 12 K’s away for that matter ) have had MASSIVE improvements in thier Telecommunications services. Fixed and Mobile. Fixed Services allowing advances in Facilities available, as well as ADSL, and extensive Mobile Tower Population to cover townships. While we have stil reveived NO IMPROVEMENT, no Increase in Capacity or Capabilities.
(True. It hasn’t gone Down Hill – But it’s difficult to go lower than Rock Bottom I guess)
Do what I do I only use my telstra landline for ADSL access & for my security system I us a VoIP provider my net fone I pay $99.00 per year & het 200 national landline calls per month & dirt cheap international calls.
What a load of crap Telstra. First you cease on the misfortune of Vodafone and grab as many customers as you can, lock us into.contracts then amend your charges.
Yes, Will. Tis the season to be gouging! And trust the greediest gougers of them all to come up with this load of old you-know-what to justify their mugging of their customers. If I stole from you in this fashion, I’d find myself in court…
Does this affect Homeline SMART plan?
Hi Barron – this plan is not affected by the monthly access and local call changes. Brendan
To be honest, I’ve been looking forward to the day when the access fees for home line budget increase that $1 to make them equal to the best price I can get from the competition. When that happens, I can finally justify leaving Telstra for good on every service. I hope they get what they deserve – financial ruin.
I went to VoIP telephone about 5 years ago and will not return. I pay $% pm for 80 untimed calls to 80 countries with an exclusive local melbourne dial-in number…
Get with the technology Telstra after all the national broadband phone will use VoIP too.
$5.00 per month
Well it would appear that all the so called hard work by David Thodey to make Telstra more customer related and to also be considered a positive company by customers has all been thrown out the window.
What this does is make Telstra go back in time to pre Thodey time to make Telstra once again the most arrogant, ignorant and most of all the most expensive service provider for telecommunications
It puzzles me, and those I chat with, why Telstra ‘wants’ to return to those times. The only answer we can come up with is that Telstra again arrogantly sees itself as untouchable and therefore it thinks it can do as it wants with little regard to existing customers and not need new customers.
Note how telstra used the term ‘changes’ to describe this, when in reality the prices are really ‘increases’. None of the changes described above describe any pricing reduction is understandable because Telstra is a business and the aim of any business is to make a profit. However, stop trying to hide behind marketing terms and describing these as changes, when in reality you have raised the price on all the items listed in the article
Good comment! Just the same as Gillard referring to the Carbon Tax as Carbon ‘pricing’. Spin and lies. Spin and lies.
Seriously – everyone else is putting prices down….good one chaps…
So if you make a less than 1 minute call(which most are) you still get charged for one min, that is why they are changing a pure money grab, thankfully Vodaphone and Optus are ramping up their networks and NBN we can also then shop around
I believe it is a tough sell for Telstra to site the investment in the Next G & 4G market to a PSTN customer who may not even own a mobile phone. This effectively looks like PSTN customers are cross subsidising Mobile users to provide them a better service.
With respect to the 60 second charging of Mobile Calls. It would appear to me to be fairer to return to per second charging and increase the price per second. As another blogger commented, for the 20 second call the 1 minute charging represents a 100% price rise. In addition the only benefit to the consumer of implementing 4G today is the provision of a faster data network. How can this be tied into an increase in charging for voice calls?
Interesting Telstra.
You are still “Moderating” my Comment.
Your comment is awaiting moderation.
27 Jul 2012 at 5:31 pm was when I submitted it.
Not one Swear Word, Not one bagging out of you as a company. Multiple comments made after mine, and ‘Moderation’ allowed “Crap” and accusations of the conmpany being “Arrogant” and “Most Expensive”.
Even comments heralding the concept of NBN being a better way to “Shop around”.
Shame on Telstra. Proof. No Free Speech!
My Prior post was just an accurate observation and a few questions for Rural Australians.
True. We’re a Minority. I should shut up now shouldn’t I.
Hi Disgruntled. Your comment has been published. I had many in moderation from the weekend, apologies for the time delay this time.
It appears to me that Telstra marketing nerds have lost the plot. I learned a simple marketing rule many years ago ” is it better to have 40 people on a bus paying $2 each or 5 people paying $4″
Fill the bus up for the same overheads.
I have had a gut full of Telstra and will shop around for a better deal.
It is interesting that telstra seems to think they can do what they like, I live in Maryborough in Victoria you don’t have a choice but to go with Telstra, their charges are already outrages, especially when relatives are not local, they don’t consider the aged, or anyone else for that matter, as for their mobiles we are paying for some we don’t have anymore because they could not be fixed, I have never had so many problems as I have with Telstra and it is a pity in a rural area you don’t have a choice.
I’ve just received the price increase letter as I hear on the news Telstra announce a $3.4 billion profit. They’ve just lost another customer.
Oh and…today we learn that the CEO has been “awarded” an 8.7 pay increase taking his fixed pay to $2.65 million, which, on top of other “earnings” delivers him $7.7 million this year.
Telstra clearly needs to make price “changes” (note that they’re not increases, they’re just “changes”).
This is nothing less than a ripoff. many calls on mobiles are to answering machines, message bank whatever and Telstra neatly manages to double the money it gets for these non-calls.
Go on do it,Telstra,and see how many people make the change…and jump ship..Unfortunatley there are a lot of country people who can not change,because there is no one else to offer a service…Telstra takes advantage of that and because of the lack of competion in country areas,they do not have a very efficient service…and seem to be incapable of doing mutch about it….Any business not being able to give a service that they are being paid for can be taken to court,but not this company…We have to start really pushing the pollies to bring in laws to make this company stick to the contracts that they are paid for…Not contiually making excuses.
A typical accountants decision to change mobiles from 30 second blocks to 1 minute. You have now put every Telstra customer on the alert to look out for a better deal from the opposition. Telstra may think there in a strong position now but we customers have long memory’s and moves like this ensure we wont hang around and remain loyal. Its easier to keep customer’s than lose them!!!!!!
$2 increase is far too much, and it doesn’t mean we are getting better service.
Just another way of maximizing profit. Thieving mob even charge you if a call does not connect. As soon as you get dial tone you are deemed to be connected to the network, so get charged.
I have been trying for days to speak with an Australian manager regarding the collapse of the billing system that has resulted in three monthly bills arriving almost simultaneously. With a direct debit system these will all be deducted in one hit. That’s almost a thousand dollars…. That’s a bit rich Telstra.
Two letters signed by Peter Jamieson have arrived, with ‘form’ explanations. No phone call, no email, no customer service. You have all my contact details to call me. Telstra you provide me with two mobile phone accounts, internet, home phone line, host my website and supply Foxtel. I spend thousands of dollars a year with you. What do I have to do to get an Australian manager to call me? I have just spent another 14 minutes on a call to the Phillipines. Very nice people but they cannot answer any questions outside a narrow band of reference. Your totally frustrated Telstra customer…. Martin
Martin, I’ve just sent you an email to follow up on this.
I I have sent an email to query on my billing for my internet with telstra . . . The auto message replied that their consultants will contact me within two business days to assist with my enquiry. I have waited for 5 days . . Mr Peter Jamieson, pse look into your system and dun give unrealities promise if your company not able to do so with 2 business day.
Customer Reference: 121213-025470
Hi there – sorry to hear that you have not yet heard back from us. I’ve just sent you an email to follow up on this.