This change to Telstra plans will leave millions better off

Telstra has overhauled its plans for mobiles and broadband but this change is one of the most significant and will help millions save.

THE removal of excess data charges is the biggest win for millions of Telstra customers in its latest overhaul of deals.

The telco giant last week revealed a massive revamp of its mobile phone and broadband products, slashing the number of plans from 1800 to just 20.

While it will take several years for all customers to transition across to the newer plans, telco

comparison website WhistleOut’s spokesman Joseph Hanlon said it would be a big benefit to consumers.

“For Telstra to remove excess data charges on all of their plans really throws it down the gauntlet the competitors,” he said.

“I don’t think it will be too long before Telstra’s competitors do something similar.”

MORE: Telstra launches 'radical' new plans

Telstra immediately removed excess data charges in Australia for new broadband and plans. Instead a customer’s speed will be slowed - from hundreds of megabits per second to 1.5 megabits per second - once they hit their monthly data limit.

The removal of excess data charges will help many telco customers save.

Customers have the option to buy extra data if they want their speeds to return to their normal capacity.

“The 1.5 megabits speed is still fast enough to browse the web and check your emails,” Mr Hanlon said.

Telstra customers on new deals will also be able to access the new 5G network for free until June 30, 2020 and then sign up from $15 extra per month on the cheapest $50, 15GB plan.

The telco has also done away with “lock-in” phone contracts for talk and text, giving customers the freedom to plan hop from month to month.

However customers on existing Telstra handset plans must see out their contract periods before moving over to the new deals.

Telstra’s group executive of consumer and small business, Michael Ackland, said it was the first major telco to offer “customers the flexibility and freedom of no lock-in across all of our plans and no excess data charges”.

Other providers that keep the cost of phones and plans separate include Vodafone and Woolworths Mobile.

Mr Hanlon said all plans Telstra were no contract, so you can change or cancel them at any time, while “the cost of the phone is split into monthly instalments over 24 or 36 months”.

@sophieelsworth