Regulators say Australia’s big telcos are hiking up prices. 

Millions of Australian consumers will pay more for their mobile phone plans after recent price increases by all three big telco companies, new analysis by the ACCC has found.

Since July 2020, Telstra, Optus and Vodafone have increased the price of several post-paid plans, and have effectively increased the price of a range of pre-paid plans by reducing their expiry periods, forcing customers to recharge more often.

Telstra, Optus and Vodafone collectively hold 87 per cent of the total retail mobile phone market, and have more than 95 per cent of the post-paid market.

“Our analysis shows that consumers will now be left paying significantly more for a range of mobile phone plans at Telstra, Optus and Vodafone,” ACCC Chair Rod Sims says.

“The behaviour of the three big telcos would suggest they are not concerned about losing customers to rivals.”

During the past 12 months, Telstra increased its post-paid mobile plan prices by between $5 and $15 per month.

Telstra has also reduced the recharge expiry on 35 and 42 day pre-paid plans to 28 days, which effectively equates to a price increase of between 25 per cent and 50 per cent over a year.

In May, Optus raised the price of all of its post-paid plans by $6 per month, which is an increase of between 8 per cent and 15 per cent. There has been no increase, however, in the cost of Optus’s pre-paid plans.

Vodafone’s post-paid plans have also gone up by between $5 and $40 a month, however, the increases are currently accompanied by heavy discounting and temporary bonus inclusions.

In December 2020, Vodafone’s pre-paid plans that previously featured a 35 day expiry reduced to a 28 day expiry for the same monthly cost. Over a year, this effectively equates to a 25 per cent price increase.

These mobile price increases follow the merger of TPG and Vodafone in 2020.

“The ACCC opposed the merger of TPG and Vodafone because we were concerned it would lead to higher mobile prices, and result in three similar providers with little incentive to compete strongly,” Mr Sims said.

“Despite evidence showing the three mobile network owners reacted strongly to the potential competitive threat of a new TPG network, the Court considered that the merger would be pro-competitive, allowing Vodafone to compete more effectively against Telstra and Optus.

“When markets end up with a smaller group of large look-alike players with stable positions, competition is muted and consumers pay more,” Mr Sims said.

The ACCC encourages Telstra, Optus and Vodafone mobile customers to compare the prices and features offered by smaller providers that re-sell services on the networks of the three mobile network operators.