Australia's telecommunications giant Telstra (ASX:TLS) announced a second wave of sweeping price hikes in just 10 months, leaving some customers facing costs up to 17% higher than last year.
The changes, effective May 5, will impact approximately 8.9 million postpaid users and extend to low-cost subsidiaries Belong and Boost.
Under the new structure, the "Basic" 50GB plan rises from $70 to $74, while the 180GB "Essential" tier climbs to $84. Most prepaid plans will also see a $5 monthly increase.
CEO Vicki Brady's aggressive pricing strategy comes as the telco grapples with a $2.7 billion bill for government spectrum access.
Consumer business chief Brad Whitcomb defended the move, citing the need for 5G investment and enhanced scam protection, noting that communication costs have historically fallen in real terms.
However, the Australian Communications Consumer Action Network slammed the decision.
"Regular customers are now left paying higher prices for services which they increasingly say no longer represent value for money," said ACCAN CEO Carol Bennett, pointing to Telstra's recent record profits.
Market analysts suggest the hike could trigger "customer churn" as users seek cheaper alternatives like Amaysim.
Telstra currently commands 41% of the retail mobile market, followed by Optus at 29%.
While a 10% discount remains available for concession cardholders, experts believe rivals may soon follow Telstra's lead to offset their own infrastructure costs.