Wake-up call: how Telstra’s ‘unreasonable’ price rises may cause customers to hang up

Telstra’s aggressive price rises have cleared the path for rivals, including Optus, to make similar increases. Photograph: Hollie Adams/Reuters

Telstra has long traded on its claim to have better – and far more expansive – mobile coverage than its rivals to justify a steep pricing premium that has accelerated in recent years.

But the telco’s latest changes, which include steep price hikes and the closure of its cheaper “starter” plan to new users, combined with a dramatic rejection of its coverage claims by the industry regulator, risk putting off many of its traditional customers, according to consumer advocates.