‘Telstra tax’ nears $1000 for premium service, consumer advocate says

A consumer advocate has revealed what he says is a “Telstra tax” Aussies are paying for the telco’s premium service, a claim rejected by the country’s biggest provider.

A consumer advocate has claimed Telstra customers could pay up to $1000 more than those on the cheapest planse when prices are hiked next month.

Researcher and advocate Joel Gibson says the premium paid for Telstra stacks up to about $300 to $400 per device or service.

The analysis compares Telstra’s offerings with the bare bones, cheapest options on the market and does not consider Telstra’s additional hardware, coverage and servicing guarantees.

“The ‘Telstra tax’ just keeps getting bigger and bigger each year, with millions of households probably paying more than $1000 extra now for the privilege of being with Telstra,” Mr Gibson said.

Most Telstra phone and internet plans are increasing in price next month, except for the telco’s cheapest options. Picture: NewsWire / Max Mason-Hubers

“There’s nothing wrong with paying a tax if you know that you’re paying it and you know what you’re getting in exchange for it, but we suspect many are unaware they have a choice.”

Mr Gibson acknowledges Telstra had the best regional coverage.

Telstra has disputed the findings, sayinng the comparisons are not like-for-like, and do not consider key differences in product plan features, experience and service.

“There is no ‘tax’. More customers choose Telstra because they see the benefits of being with us,” a Telstra spokesperson said.

“Telstra has a wide range of products and we invest significantly to offer a value proposition different to our competitors, and customers choose Telstra products because they best suit their needs.”

The spokesperson said Telstra is Australia’s largest mobile network and reaches more of Australia than any other mobile provider.

“Providers like Belong, Aldi or Woolies are on the Telstra Wholesale Mobile Network and is a different option for customers as it only uses parts of Telstra’s mobile network.

“In addition, only Telstra customers on our Upfront Mobile Plans have access to Australia’s first satellite to mobile text messaging product, Telstra Satellite Messaging which we announced yesterday.

“Telstra Satellite Messaging allows customers with compatible mobile devices to send and receive text messages from almost anywhere in Australia where they don’t have mobile coverage.”

Telstra has defended its price plans for mobile and internet services. Picture: NewsWire / Luis Enrique Ascui

Announced last month, most Telstra phone, data and internet plans are going up between $3 and $5 per month.

However, the cheapest mobile and internet contracts are staying the same price. Pre-paid phone plans and 5G home internet prices are staying flat as well.

Crunching the numbers for consumers using Telstra internet, a mobile plan and mobile phone, Mr Gibson said consumers could save $1000 per year.

A former journalist and editor, Mr Gibson is now a consumer spending advocate under the title Joel Kills Bills. He and telco comparison site Whistle Out did this latest analysis together, using Telstra’s July 1 price hike figures as a reference.

From July 1, Telstra’s standard NBN plan will be $408 more than budget provider Exetel. Recent government testing shows Exetel has faster download speeds; however, the consumer must pay for the modem.

NBN Co is also raising its wholesale prices 3 per cent this coming financial year that the telcos are passing on to the consumer.

Originally published as ‘Telstra tax’ nears $1000 for premium service, consumer advocate says