Telstra customers could be hit with above-inflation price increases for mobile phone plans, as well as higher internet fees, as the telecommunications giant slashes costs, axing up to 2800 jobs by the end of the year.

Telstra chief executive Vicki Brady cited inflation and technological changes as justification for the extensive job cuts – which represent almost 10 per cent of Telstra’s 31,000-strong workforce – and more unpredictable price rises for consumers as the company tries to stay competitive.