As rivals Optus and TPG activated their $1.6 billion network sharing agreement last week, alongside current trials of direct satellite connectivity to smartphones underway in the country that could result in the amount customers pay to access data and voice slashed in regional areas, Telstra is being forced on the backfoot with claims that it is overcharging customers.
TPG chief executive Iñaki Berroeta declared the telco’s latest agreement with Optus will end the “bush tax” that he says bigger rivals such as Telstra is subjecting customers to in regional Australia.
“We have heard loud and clear from Australians that they are fed up with having to pay a premium for regional mobile coverage. It’s a bush tax and we want to end it,” said Berroeta, according to The Australian.
Telstra has pointed out that its network was more than three times of Vodafone’s expanded footprint, and that there were significant costs associated maintaining those networks.
“We’re all for choice and competition, it’s what drives us to be our best, but let’s be clear about what best looks like,” said a Telstra spokesman.
“If you live or travel in rural and regional Australia, you know mobile coverage can’t just stop the moment you step out of town. Knowing you’re covered on the road, in the paddock and in more places across Australia is critical.
“Customers will always choose the option that best suits their needs, and we’ll continue to invest like we always have, so we can offer them the best choice.”
“We are also continuing to expand our 5G footprint which remains Australia’s largest 5G and is available in most metro and many regional areas today.”
Telstra is reported to be charging up to 24% more for mobile phone plans than its rivals. Telstra’s base sim-only mobile plan costs $65 a month for 50GB of data – more than 24% higher than a similar data offering from Vodafone.
TPG’s Felix Mobile offers half-price plans. Optus’s base sim plan costs $62 a month for 180GB of data.
Telstra has been sharply increasing prices after its chief executive Vicki Brady stopped the practice of linking subscription prices to inflation last year.
The jump in some of its prepaid services were recorded in the double digits. For example, its $35 monthly plan rose 11% to $39.
There is a race now to deliver more competitively priced offerings in the telco sector. As ChannelNews reported here, Peter Adderton who sold his Boost Mobile business to Telstra, is attempting to reduce the cost that consumers pay for their mobile plans.
Adderton who flies between his home in California and Sydney is currently building out a new network in the USA called Mobile X which was developed with Jason Hayes the current CEO of Boost Mobile in Australia.
The core value for consumers on Mobile X network is that they only get charged for what they use vs the SIM model used in Australia that results in consumers paying for a vast amount of data per month.
