Telstra is under fire for raising the price of plans by $ 5 because people are struggling to make ends meet
Telstra has been criticized for its high prices at a time when many Australians are facing definitive demise from the coronavirus pandemic.
Australia’s largest telecommunications company raised the price of all their plans by between $ 5 and $ 15 a month in early July.
Telstra said the price increase was due to the company investing heavily in the 5G network.
The move would increase their plans from a minimum of $ 50 a month to a minimum of $ 65 a month if customers wanted to access the 5G network.
It comes from data from the Australian Bureau of Statistics that 3.5 million Australians were forced to withdraw money from their savings or super to cover the cost of their basic expenses between mid-May and mid-June.
Australia’s largest telecommunications company raised the price of all their plans by between $ 5 and $ 15 a month in early July
Telstra said the price increase was due to the company investing heavily in the 5G network
Telstra said that customers who switched to a new plan before September 30 will not see their bills increase for 12 months.
The telco also said they would mitigate the deal by raising the data cap of their plans.
“It is important that we find the right balance between adapting to market conditions and ensuring that we are a sustainable company for the future,” said a spokesperson for Telstra.
Many Australians were outraged by the price hike during the difficult financial times caused by the corona virus pandemic.
Telstra has always made a profit on the people of Australia. Disgusting business conduct and I look forward to canceling my broadband service next week, ‘said an angry customer on Facebook.
Another wrote, “There should be price cuts for the corona virus.”
“It sounds like doing business that they are good at and selling all their customers,” wrote one man.
Another man said, “Telstra is undoubtedly the worst Australian company when it comes to customer relationships.”
The Telstra spokesperson said that any price increase during the coronavirus would not be answered with a positive response from customers, and the telco understands their frustration.
“We recognize that the timing of a price increase is always difficult and that is why we offset the impact of this specific price increase for 12 months,” said a Telstra spokesperson.
They said Telstra has made many changes to plans that will help ease some of their customers’ financial stress.
“We removed late fees for direct debit customers to avoid being stung twice for unfair debt collection,” said the spokesperson.
“We’ve allowed small business owners and consumers to suspend their services online if their circumstances change or if they just need to cut their spending.”
The move would increase their plans from a minimum of $ 50 a month to a minimum of $ 65 a month if customers wanted to access the 5G network
Data from the Australian Bureau of Statistics showed that 3.5 million Australians were forced to withdraw money from their savings or super to cover the cost of their base costs between mid-May and mid-June
Telstyle analyst Foad Fadaghi said customers don’t need more data as many work from home and are connected to their Wi-Fi.
“Telsyte research shows that while data usage is increasing, data allowances are growing much faster,” said Mr. Fadaghi.
“The average occupancy rate for a given month … was 30 percent in 2019, down from 41 percent in 2018 and 50 percent in 2017.”
He said customers want to spend less money, especially during a pandemic, as they struggle to support themselves and their families
ABS data showed that 227,700 people lost their jobs or quit the search in May after the second full month of coronavirus shutdowns.
The unemployment rate in May was the highest unemployment rate since October 2001, when 7.2 percent of the labor force were out of work.
The official number of unemployed, where recipients receive benefits or look for work, rose by 85,700 to 927,600 in May – an increase of 30.9 percent from a year earlier.
After the grim economic news, Prime Minister Scott said, “This is the biggest economic challenge this country has ever faced.”
He predicted it would take two years for the economy to recover – as COVID-19 triggered the first recession in nearly three decades.
“Coronavirus is the reason people have lost their jobs,” said the prime minister.