Interesting to see Telstra announcing today that they are lifting mobile plan prices in the coming few months, after canning the inflation increase in July 2024. They say it will be a price rise of $2-$4 per month. On a medium monthly plan of $65, that amounts to an increase of 3 to 6%. Probably a bit less than the previous year's inflation. But as a carrot, they are increasing the data allowance on their post paid starter plan, while keeping the price the same.
There is always some customer churn with price rises like this. So it will be interesting to observe what happens this time. With the threat of rising interest rates in Australia. I had been expecting the Telstra share price, with Telstra being a 'yield play', to head back down. Yet the opposite has happened over the last two weeks. Maybe someone second guessing a net positive from the mobile plan price rises announced today?
The other thing that may be happening is that investors are buying Telstra as a proxy for buying the $A, (like some international players buy Spark as a proxy for the $NZ). Thus if the Reserve Bank of Australia puts up interest rates in August, or there are enough market rumours to suggest that it might, then these international investors may sell down Telstra as the value of their $A invested in Telstra rises. Expect this little game, if that is what it is, to play out over the next month or so.
SNOOPY
Bookmarks