Affordability in focus: How Telstra’s changes impact everyday Australians

ACCAN has raised concerns over Telstra’s plan to raise prices, warning it will hurt consumers already facing cost-of-living pressures.

The Australian Communications Consumer Action Network (ACCAN) has raised serious concerns over Telstra’s plan to raise mobile and internet prices, warning it will hurt consumers already facing cost-of-living pressures.

Telstra’s decision to maintain pricing on its lowest-cost Starter plans and continue concession discounts is welcome. ACCAN also appreciates the statement from Telstra that it will be investing $800m into upgrading its mobile network and satellite technology (direct-to-device) connectivity.

Despite these improvements in the overall service offering, the price increases will place an impost on millions of Australians already under financial pressure.

ACCAN CEO Carol Bennett said that Telstra’s price increases come at a time when Australians are facing significant cost-of-living pressures.

“Connectivity is no longer a luxury—it’s essential for work, education, health care and safety. Even small monthly increases can be the difference between staying connected or being excluded. This is particularly true for those on low incomes, fixed incomes or experiencing vulnerability.”

“The fact is that these price increases are approaching 10% on some plans. This is a real additional cost on households, and many will feel the difference.”

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“These changes further highlight the urgent need for a government-backed concessional broadband product. Such a policy would provide an affordable, reliable broadband service for households receiving government income support—and help ensure that no Australian is left offline.”

“A concessional broadband product is the most direct way to ensure that people doing it toughest can access the connectivity they need.”

ACCAN notes that mobile virtual network operators (MVNOs) often offer more affordable plans using the same—or similar—networks as the major providers. However, many Australians may remain unaware of these options or are hesitant to switch due to concerns around reliability or brand familiarity.

“We encourage consumers to assess their data needs and compare major telco offerings with smaller providers such as Belong, Boost, Amaysim, Tangerine, Spintel or Aldi Mobile, which may offer better value while still using the capacity of a major network,” Bennett said.

“With new financial hardship rules in effect since March 2024, we encourage consumers who are struggling to meet telco payments to contact their provider and discuss support options.”

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Adrianne Saplagio is a Content Producer at Comms Room, where she combines her passion for storytelling with her expertise in multimedia content creation. With a keen eye for detail and a knack for engaging audiences, Adrianne has been instrumental in crafting compelling narratives that resonate across various digital platforms.

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