Telstra to offer mobile plans with data prioritisation

Telstra is set to offer mobile plans with prioritised traffic during periods of network congestion. Customers who opt for a plan with "data prioritisation" would get faster speeds than customers who don't have the inclusion. 

The change was revealed in updated customer terms that take effect from December 11, sent to both Telstra and Boost Mobile subscribers this week. The addition is as follows: "Some plans may include data prioritisation. If your plan doesn't, your data speeds may be slower than prioritised traffic during congestion periods."

Other new "network coverage and management" terms note that coverage and performance may vary between plans, and that some plans may offer "broader coverage or enhanced features". In addition, Telstra says not all network upgrades will apply to every plan. 

A Telstra spokesperson confirmed to WhistleOut that Telstra is going to launch plans with data prioritisation, but the telco has yet to finalise what this will look like or when the plans will become available. 

"Offering connectivity options that are more customisable for customers is a key part of our Connected Future 30 strategy and we are updating our customer terms in readiness to offer these in the future," said the spokesperson. 

"We’re still determining the details. Once we have these, we’ll share with our customers so that they can make the right choice based on their needs."

Connected Future 30 is Telstra’s roadmap for the next five years. A key element is rethinking how the company sells connectivity. When the strategy was announced in May, CEO Vicki Brady talked about "reinventing" the way the company "captures and creates value" from the network. 

"It’s thinking about how we monetise the network attributes like uplink, like latency, like enhanced security by really enabling our customer engagement teams to create differentiated offerings," said Brady. 

When discussing Telstra's consumer segment, Brady suggested fast download speed plans tailored for customers who like streaming on the go, versus plans that prioritise upload speed for customers who do a lot of video calling.  

Optus briefly offered a high-end mobile plan with data prioritisation, but discontinued this in May 2021. 

While it is unclear what Telstra will charge for data prioritisation, Optus' implementation suggests it will be a high-end feature. Features like data prioritisation are a way to create more meaningful differentiation for premium plans in their portfolio, which aligns with how Telstra has been discussing Connected Future 30.  

Back in May, group executive for product and technology, Kim Krogh Andersen said the company wants to make what customers pay for "more tangible".

"If you’re on the Telstra-branded top-tier plan, then it’s clear for you why that is premium," said Andersen.

Data limits are still the most common way for telcos to differentiate plans, but inclusions are out of line with actual usage. While the most expensive plans offered by the likes of Telstra, Optus, and Vodafone now come with hundreds of gigabytes, the average Australian only uses 20GB per month. Telstra, Optus, and Vodafone postpaid plans all come with a minimum of 50GB, so there isn't much incentive for customers to opt for something expensive. 

Conversely, a mobile plan with what's effectively a "congestion-free" promise could be a more attractive reason for some to spend more. 

Alex Choros

Managing Editor + Group Telco Editor | X | Instagram | Threads | LinkedIn

Alex Choros is the Managing Editor of WhistleOut Australia and an award-winning journalist. He's been writing about consumer technology for over a decade and is an expert on the Australian telco sector, to the point where he knows far too many phone and internet plans by heart. In addition to leading the WhistleOut editorial team, Alex is responsible for ruining the office Sonos with his troubled taste in music.

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