Telstra will launch a "wide" new range of postpaid plans with no excess data charges in July.
Dubbed "peace of mind" data, the offering sounds similar to the endless data plan Telstra launched earlier this year and subsequently pulled due to pressure from the Federal Court. While Telstra has yet to confirm details of these new plans, we're assuming that they will have a fixed amount of data, after which customers will be restricted to slower data speeds.
Telstra CEO Andy Penn says that this is the first step to "radically simplify" the company's offering.
"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," said Penn.
Telstra will "progressively announce" four more major product and service experiences in the lead up to June 2019, when it intends to launch the new, simplified range.
The telco is currently keeping specifc details surrounding its new plan range confidential for competitive reasons, but Telstra Group Executive for Consumer & Small Business, Vicky Brady, outlined some of the changes. These include:
- Radically simpler products.
- No more complex bills or charges for excess data. "We know customers are uncertain about the charges that they receive on a monthly basis," said Brady.
- "Freedom to move between plans at any time".
- Incentives to have more services with Telstra.
- Entry level companion plans for secondary devices.
- Expanded range of "value added services", such as streaming and entertainment add-ons.
- Simplified digital self-service options.
Brady said the new plans will be "modular". While this wasn't explicitly clarified, we wouldn't be surprised if this ends up being similar to Vodafone's approach where you'll pick a base plan, and then choose add-ons such as a phone or tablet, entertainment options, and additional SIM cards.
All Telstra customers will be moved to the new product range by June 30, 2021.
As a result of these simplified plans, Telstra is hoping to eliminate the need for one-third of support calls by 2020 and the need for two-thirds by 2022.
Penn says that these changes are being made to address customer dissatisfaction with the complexity of plans, describing the current model as "unsustainable". Simplifying plans and leaving behind legacy charges will eliminate $500 million of historic revenue from the business, but believes that customer growth will make up for this.
Telstra's news coincides with an announcement that it will eliminate 8,000 jobs of the next three years. This will include one in four executive and middle management roles to flatten the company structure,
"We understand the impact this will have on our employees and once we make decisions on specific changes, we are committed to talking to impacted staff first and ensure we support them through this period," said Penn
Alex Choros
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