Telstra will abolish post-paid mobile plans

Telstra will abolish post-paid mobile plans

Tough luck if you don’t like direct debit. Telstra will abolish post-paid mobile plans in a move to eventually make all its consumer-facing services pre-paid via direct debit.

It is a move by stealth. Normally you get a bill that you had 14 days to pay. Now it will be paid via direct debit to your credit card or bank account.

The announcement was without warning. It has left those who like to get an invoice and check it is correct, without recourse. And as it is impossible to contact a human at Telstra disputing the bill will be even harder.

Then there are those with genuine hardship that juggle bills. Sorry that option no longer exists, and you can’t easily contact anyone willing to listen. That right – even 13 22 00 goes automatically to useless and utterly time-consuming Telstra online chat (that you cannot record and save).

Telstra says it is for your own good

‘You will continue to get access to the Telstra Mobile Network, with unlimited standard national talk and text in Australia. You also won’t incur any excess data charges in Australia. Instead, your speeds will slow to a maximum of 1.5Mbps if you exceed your data allowance.’

‘You’ll share your data allowance with up to 10 services on your account. As long as they are also on an upfront mobile plan.’

And it infers that all new transactions – internet, Foxtel etc. will become pre-pay too.

What do you lose?

  • Voice to Text 
  • Caller Tones
  • Mobile Protect
  • Telstra Air
  • International Roaming (coming)
  • One number (share the phone and watch)
  • eSim

Not happy Andy

If you don’t want to entrust bank pre-payment details to Telstra, you can move to one of the many MVNOs (Telstra, Optus, Vodafone network resellers) if you first pay off any device or outstanding charges.

That means you won’t be able to transfer your phone number until you are all square with Telstra. Even if you dispute the amount owing.

And if you exist pay-to-pay or your credit card expires before the next bill then services are cut. No questions allowed.

Telstra will abolish post-paid mobile plans
Andy Penn CEO Telstra

GadgetGuy’s take

Telstra will abolish post-paid mobile plans. I won’t comment on the move’s senselessness nor its abandonment of the universal services obligation. It is only good for Tel$tra in that it creates a massive shift forward in cash flow. And a reduction in chasing overdue accounts. It is another sign that Telstra does not want to deal with consumer and small business anymore.

We have long said that Telstra is only interested in high-value enterprise, government and education markets. Its T22 pricing may have reduced 1800 plans to 20. Now its a handful where the cheapest 5G monthly pre-paid is $65 for 80GB. Most users will never consume that.

We find MVNOs and CSPs have a closer relationship with users and offer better value.

So ditch Telstra and find a decent NBN and mobile provider – you may even get your plan for free.

I did and could not be happier.