Telstra Turns to Drones in New Sales Strategy

Telstra Australia’s biggest Telco, in a bid to revive the brand and retain its customers amid intense competition from rival telecommunications companies is strategically changing its product offerings including mobile plans and home broadband bundles, with 20 accessories and devices including smart watches and speakers to be provided as optional extras, reports the Sydney Morning Herald. The range will be increased to more than 30 devices ahead of Christmas.

Earlier this year Telstra’s radical fight back strategy “Telstra 2022” (T22) was launched by its  chief executive Andy Penn and involved streamlining its plans and products as one of the new areas of focus. After the T22 plan was announced, the Telco moved to remove its excess data charges on new plans as they were a “pain point” for customers.

The National Broadband Network has begun its roll-out and decreased the profitability of selling fixed products leading to mobile competition surge resulting in drastic price drops and increased data allowances by rival providers. Providing additional inclusions and differentiating mobile plans with add-ons such as sports content has become the latest frontier of competition these days.

Penn’s plan for revitalising the Telco has included new mobile bundles, which allow Australians to add drones and other devices to their plan. Telstra’s head of consumer and small business, Michael Ackland, told Fairfax Media the change was to “make it as easy as possible for customers to add devices” to their plans, with a view to an increasingly connected future saying “It’s an important step towards our Telstra 2022 strategy and a modular product. Connectivity is no longer just about phones and internet.”

So now Australians can go into a Telstra store and order a device, a flying drone for example, along with a new mobile phone or broadband plan and pay it off monthly on the same bill. Telstra intends to introduce “fully modular plans” by June 2019, to offer more flexible subscriptions and the ability to change between plans each month. Business plan changes are around the corner. The new add-ons are paid off over the course of a 24-month plan with no upfront cost, or are paid out in full should a customer choose to end a plan early.

Telstra has also adjusted the way Foxtel can be added to plans and bundles as a part of its strategy. Customers were required to buy the most expensive internet bundle to have Foxtel included earlier. From this week onwards, customers can add Foxtel to any package, even a small bundle.

Foxtel is aggressively marketing its new ultra-high definition 4K channel and coverage of the men’s Australia versus South Africa cricket game on November 4. Free-to-air broadcaster Seven West Media bought the rights to cricket in a joint-bid with Foxtel for $1.2 billion earlier in 2018. The change in Telstra’s offers has been made keeping in mind the event.