Telstra to radically simplify mobile offerings as part of broader overhaul

By this time next year, Telstra’s 1800 or so mobile, internet and fixed lines plans will be slashed to just 20 as part of a simplification push.

Pedestrians walk past a Telstra store in Melbourne. Picture: Bloomberg

By this time next year Telstra’s 1800 or so mobile, internet and fixed line plans will be slashed to just 20, with the telco radically simplifying its range of consumer and small business offerings and promising to remove customer pain.

In the first of four pillars in its “Telstra2022’ restructuring plan, the telco (TLS) declared at its investor day today there would be “no more complex bills” and announced an elimination of charges for excess data, an approach it said would be an industry-first in Australia.

The move will mean effectively all of Telstra’s mobile plans will become unlimited, with some potentially having speed caps.

Customers will be able to build their own plans, picking and choosing the type of services they value, and Telstra said there will be a number of better value bundled options on offer to incentivise customers to tie their entertainment, home broadband and mobile all into one plan.

There is also a clear push to make the service process more digital. with the Telstra app to be completely refreshed. Customers will be able to log in and make their transactions — buying a plan, updating their plans, adding new features — as quickly as possible.

The changes start next month, with new plans Telstra says will have “all the data you need without the worry.”

Telstra’s group executive for consumer and small business, Vicky Brady, said today the telco’s overhaul of its products offerings was all about shedding its legacy.

“We believe that our plans are among the most bold in the world, when we compare them to our global peers they are ambitious,” she said at the telco’s investor day.

She added that the product redesign will see the telco “fundamentally change” its relationship with its customers.

“The number of plans available in the telco market today are far too many and they are too complex, with services included that they don’t value.”

“Customers are uncertain about the charge they are going to receive on a monthly basis and they feel locked in, we will fundamentally change this.”

Telstra will also allow customers to design their own plan.

“Customers will have choices when it comes to handsets and there will be an expanded range of value added services.” Ms Brady said.

“We want customers to have an easier access to companion plans, what we mean by that is that once a customer has one connectivity service with us we are going to make it a very easy decision for them to add further services at a really great value, this could be a service for another family member, another employee in a business.”

“Wrapped around this we will have clear incentive for customers to have more services with us.”

Tesltra chief executive Andy Penn said “Leveraging our investment in digitisation, we will simplify our products by retiring more than 1,800 plans and introducing 20 core plans backed up by an effortless digital service that removes complexity and provides cost certainty — addressing key pain points for customers.”

Telstra will “progressively announce” four more major product and service changes in the lead up to June 2019, when it intends to launch the new, simplified range.