Telstra – Way Forward On 5G Pricing

Telstra - Way Forward On 5G Pricing

The 5G technology is the next big thing in mobile network standards as it is going to bring in a radical upswing in data rates, both for downloading and uploading data.  Australia’s leading telecommunications company, Telstra Corporation Limited (ASX: TLS), is sitting at the cusp of the next evolution of telecommunications technology – 5G. The 5G technology is going to be transformative for the telecommunications industry as it will offer new opportunities for revenue growth to telecom companies.

As 5G technology provides much better and faster data services to the users, it was expected that the telecom companies will be charging higher prices for providing this technology. However, at the recently held MWC Conference, Telstra’s CEO Andy Penn told that the connectivity plans for its 5G networks won’t be much different than its current plans for other networks. Recently, the company also announced that it is going to provide free upgrades to the 5G version of the recently launched Samsung Galaxy S10 phones. This also indicates that the company’s pricing plans for 5G technology won’t be much different than it is for 4G and 3G plans.

For a long time, Telstra has been preparing for the commercial launch of its 5G network. In the past one year, the company has achieved a number of major milestones, including switching on 5G technology across selected areas of the Gold Coast, making Australia’s largest and fastest mobile network the first in the country to be 5G ready.

In late 2017, Telstra completed a world-first 5G trial data call over mmWave spectrum using its production core network and later in 2018 the company took another major step forward by launching the 5G Innovation Centre on the Gold Coast. That Centre has since been home to the world’s first precinct of 5G-enabled Wi-Fi hotspots, Australia’s first 5G connected Car, one of the world’s first 5G esports experiences, and the world’s first end-to-end 5G non-standalone data call on a commercial mobile network.

In 2018, the company started switching on 5G technology on its network on the Gold Coast quickly followed by the first regional cell site in Tamworth, making Telstra’s network the first in the country to be 5G ready. The company has already launched its 5G-enabled mobile base stations in three cities of Australia i.e. Adelaide, Canberra and Perth.

The company has set a benchmark of having more than 200 5G-enabled sites live by the end of 2018. Together with its network partners, Ericsson and Qualcomm Technologies, the company has achieved Australia’s first use of a commercial 5G chipset in a form factor device over the company’s commercial spectrum.

Till now, the company has not revealed its pricing strategy for the 5G networks, however, as per recent market news, it is believed that the pricing won’t be much different than its current 4G and 3G Plans.

TLS’s shares traded at $3.310 with the market capitalization of circa $37.23 Bn as on 1 March 2019.


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