Optus lifts costs of mobile plans, analysts hopeful TPG lands roaming deal

Optus quietly increased the price of its month-to-month phone plans the same day the $1.8bn TPG-Telstra network sharing plan was rejected.

Optus faces criticism after the nation’s second largest telco raised its mobile plan prices while celebrating “the good outcome” of the $1.8bn TPG-Telstra network sharing deal being knocked back.

Customers of the Singaporean-owned company received emails on Wednesday notifying them that their “Choice” plans were set to rise by nearly $20 per month.

The price hike drew much criticism in online forums including on Reddit, with one particular post drawing over 500 comments from users who claimed to have had their plan rise as much as 60 per cent from $30 to $49 per month.

However, an Optus spokesperson denied the telco had increased its prices but said only its old plans were going up to make “new features and benefits to be available to all our customers”.

“We have not increased the price of our in-market plans, although some customers on older plans will be moved onto more current plans, where they can enjoy new updates, like our super-fast 5G and innovative Living Network features, like Call Translate, Pause and Turbocharge in our mobile plans,” they said.

The spokesperson said all price changes had been communicated and that Optus believes “some customers may see a price increase or even a price reduction”.

The increases arrived as chief executive Kelly Bayer Rosmarin spoke at the telco’s inaugural Optus Tech Day alongside former NSW premier Gladys Berejiklian, who now serves in the telco’s enterprise and business division.

Optus CEO Kelly Bayer Rosmarin. Picture: NCA NewsWire / Damian Shaw

The event kicked off as the Australian Competition Tribunal handed down its decision on the TPG-Telstra network sharing deal, in which a full verdict has not yet been published.

While TPG has previously ruled out signing a similar deal with Optus, analysts at Goldman Sachs believe there’s still some weight behind the idea.

Analysts said they believed TPG could “sign a similar, but potentially less attractive deal with Optus” or look to land a roaming deal with either Telstra or Optus.

It noted TPG could “remain a metro centric operator, while continuing to lobby for mandated domestic roaming” and look to use satellites for direct to handset coverage but said this was unlikely in their view.

Macquarie analysts shared a similar view of TPG reaching a roaming deal with Telstra or Optus.

“TPG and Telstra are reviewing their options for an appeal to the Federal Court, with the best-case scenario a successful appeal. Our base case is for a domestic roaming agreement between TPG and either Telstra or Optus,” the note read.

TPG fell 2.7 per cent to $5.12 while Telstra dropped 1.8 per cent to $4.34.

TPG CEO Iñaki Berroeta. Picture: Adam Yip

Telstra CEO Vicki Brady. Picture: NCA NewsWire / Luis Ascui

The Tribunal said in its summary that it was “not satisfied” the deal, particularly regarding the use of TPG’s spectrum licences, met conditions of authorisation under the competition and consumer act.

“The Tribunal accepts that the proposed transaction has pro competitive benefits, in that it would be likely to improve the competitive position of TPG in comparison to the likely counterfactuals,” Justice O’Bryan said on Wednesday.

“However, the proposed transaction would also deliver to Telstra material competitive advantages, which would be likely to have the effect of weakening the competitive position of Optus.”

In a statement, Ms Bayer Rosmarin said: “This is a good outcome for our regional communities as it will mean they will continue to benefit from competition as Optus reaffirms its commitment to providing Australia’s regional communities with a strong network and great service.”

However Telstra chief executive Vicki Brady lamented it was a “disappointing” decision, meanwhile TPG chief executive Inaki Berroeta said the decision “entrenches the status quo” of regional mobile networks.