Telstra’s recent announcement about a significant reset of its business model has sent ripples through the telecommunications sector. With plans to cut 2,800 jobs and overhaul its pricing strategy, Telstra is positioning itself to better navigate the rapidly changing market dynamics. For businesses, these changes could bring both challenges and opportunities. Understanding the implications of Telstra’s new pricing model is crucial for staying ahead.
Telstra’s decision to remove Consumer Price Index (CPI) indexation from its pricing model is a significant shift. Previously, prices were adjusted annually based on CPI, linking them directly to inflation rates. By decoupling from CPI, Telstra gains the flexibility to set prices based on a broader range of factors, including market conditions, competitive pricing, and customer value propositions.
This newfound flexibility means that while prices could potentially rise above inflation, they could also be adjusted downwards or remain stable depending on various market forces. For businesses, this shift necessitates a close watch on Telstra’s pricing announcements and a proactive approach to budgeting for telecommunications expenses.
The restructuring of Telstra’s pricing model is poised to have widespread implications. With CPI indexation removed, there is speculation that prices for certain services may rise more than in the past. This is particularly relevant for businesses that rely heavily on Telstra’s services.
Telstra has already indicated changes in its home internet plans. For instance, the Basic internet plan will increase by $4 per month, while the Essential plan will increase by $5 per month. Conversely, some premium plans will see a decrease. Businesses should evaluate these changes and assess their impact on operating costs, especially if multiple services are affected.
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As part of the reset, Telstra is also decommissioning several services — a move aimed at phasing out less profitable and declining revenue streams to streamline operations and reduce costs. Services linked to the fixed enterprise business are among those being withdrawn.
For businesses, this means re-evaluating current service agreements and exploring alternatives to ensure continued connectivity and operational efficiency. Engaging with Telstra to understand the timeline and impact of these decommissioned services will be critical for a smooth transition.
Adapting to Telstra’s new pricing model requires a strategic approach. Here are some steps businesses can take:
Taking these steps will help businesses stay resilient and adaptable in the face of Telstra’s evolving pricing strategies.
VoicePlus's Atrium platform offers a robust solution for managing site and branch connectivity amid these changes. Atrium provides a unified management system that simplifies network oversight, enhances security, and optimises performance.
Using Atrium, businesses can more effectively navigate Telstra’s new pricing environment, maintaining operations without compromising on quality or security.
Telstra’s pricing model reset marks a pivotal moment for the telecommunications industry. While it brings challenges, it also offers businesses opportunities to reevaluate and optimise their telecom strategies. Staying informed and proactive is imperative.
VoicePlus is here to support your business through these transitions. Whether you need help understanding the new pricing model, adapting to service changes, or leveraging Atrium for better connectivity, we’re committed to helping you achieve operational excellence.