BUZZ-Australian telcos can see opportunity to raise prices as consumer loyalty remains strong, says Jefferies

Reuters
03-24
BUZZ-Australian telcos can see opportunity to raise prices as consumer loyalty remains strong, says Jefferies

** Jefferies analysts suggest mobile operators like Telstra TLS.AX and Aussie Broadband ABB.AX have room to increase prices in 2025, as a recent survey indicates strong consumer loyalty

** Jefferies' proprietary survey of over 550 Australian respondents shows more than 80% customer satisfaction rates across mobile service providers despite a high number of industry complaints

** Says survey reveals that 26% of mobile service consumers are willing to spend up to A$5 more, providing leverage for operators to raise prices

** Customer base appears sticky with only 9% and 10% of respondents having switched providers in the last 6 and 12 months respectively, limiting upside for TPG Telecom TPG.AX post its Mobile Network Sharing deal (MOCN) with Singapore Telecommunications STEL.SI owned Optus - Jefferies

** Adds, on the home broadband front, 60% of TLS' mobile customers also use their home internet service, indicating potential to raise prices following the planned speed boost in September 2025

** Jefferies views Telstra as well positioned due to its premier mobile network, strong brand reputation, and loyal customer base, and expects mobile operators to begin raising prices this year

** Post the MOCN deal with Optus, only a small percentage of consumers are expected to switch to TPG, thus it continues to favour TLS and ABB

** communication services .AXTJ flat YTD

(Reporting by Kumar Tanishk in Bengaluru)

((Tanishk.Kumar@thomsonreuters.com; X: @thatstanishk;))

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