In just a few short years smart speakers, drones, connected watches, and headsets have become common. As technology is advancing, telecommunications companies are leaving no stone unturned in the bid to attract potential customers – and Telstra is no exception. For the first time, Australian customers can add high-end smart devices to their mobile plan without paying an upfront fee. In this unique plan, customers pay for their item of choice throughout their contract, making expensive tech accessible even to those on a budget.
Why is Telstra offering such a unique package?
Telstra has been dominating the Australian telecom market for many years. However, due to emerging new players and technology, along with stiff competition in the market, the company is finding it more of a challenge to remain on top.
In a bid to revive their brand, the company has revamped their strategy. The focus of the company is to strategically offer home broadband bundles and mobile plans to retain their existing customers and to attract new accounts. To attract potential new customers, Telstra is offering 20 devices including speakers, drones and smartwatches with their mobile plans.
What is in it for the customers?
With a view towards attracting consumers, Telstra is offering customized mobile phone packs. The company’s “T22” strategy will empower the customer to choose their base plan or broadband plan and value add-ons of their choice.
For example, customers can add a drone to their plan and pay it off monthly as part of their bill for 24 months. The reason behind the drastic change by the company is to make it simpler and more cost effective for customers to purchase extra devices. Customers can pay for the new add-on throughout the 24-month period, or pay it off earlier if the customer wants to terminate the contract.
The benefits for Telstra
Through this initiative, Telstra is aiming to offer flexible subscription and the ability to change between plans. Looking at their future, the company believes that connectivity is no longer limited to just plans and internet – the concept of connected devices is being applied in ways previously only seen in science fiction. Through their T22 strategy, the company is trying to revive their sales and build a long-term relationship with customers. A customer who opts for an additional smart device will have to remain with the brand for a minimum of 2 years as they pay off their device. To further entice customers, the telco brand removed excess data charges for their new plan.
Where did this innovation come from?
Recently, the National Broadband Network began to decrease the profitability of selling fixed products, and competition in the telco market is at a peak. Due to this change, telcos in Australia are cutting down on their rates while increasing data allowances. Providing add-on devices and different telecom plans with additional add-on services such as football content seems to be the new strategy for the telecommunications industry.
A connected future
In the foreseeable future, the company will allow their customers to add Telstra Locator to find connected valuable tags. To further entice customers, the company will be offering the locator on a monthly payment basis. Also, to increase the subscriber base, customers will get a Google Home Mini for free with the purchase of an eligible Android device.
With technological advances in the telecom industry and increased market competition, Telstra is moving in the right direction by providing innovative solutions to allow customers to own and connect new smart devices. With the incoming use of eSIMs likely to make customers less locked in to a plan, Telstra have covered their bases by broadening the types of technology available to customers and providing another avenue for securing long-term contracts. The result is likely to be a more connected public, and good financial return for Telstra.