Mobile phone recycling: Telstra ‘risking customer growth’ with price hikes

Telstra is risking alienating its current customer base and putting off others from joining the firm with its recent price hike, according to analysts.

The mobile phone operator announced it would be significantly increasing the cost of mobile phone contracts with tariffs on the up.

Entry-level Telstra smartphone plans will now start at $60 – up from $49 – while it has cut its data allowance by half a gigabyte a month.

The cost of downloading is around 34 per cent higher than on Optus or Vodafone's networks, while voice calls are up 15 per cent, the Sydney Morning Herald reports.

Alice Bennett of Commonwealth Bank's equity research team believes the growing importance of data and Telstra's high entry level pricing is making the company an expensive option.

“Telstra is increasing its premium at a time when Optus is planning more aggression, Vodafone is bottoming and [virtual operators] like Amaysim and TPG are gaining more visibility,” she continued.

Posted by Samantha Green

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