Telstra price hikes confirm Aussies will pay for Huawei 5G ban

Telstra price hikes confirm Aussies will pay for Huawei 5G ban

[Sydney, July 17th 2020] Today’s national media criticism of Telstra’s price hike for its mobile customers by up to $15 per month confirms Huawei’s prediction that the ban on Huawei delivering our 5G technology would mean higher mobile prices for Australians.

The UK Government has already confirmed that its 5G ban on Huawei will cost UK operators at least UK£2 billion in extra costs that will be passed onto consumers and will delay 5G deployment by at least three years.

The Turnbull Government made no such admission about the true cost of the 5G ban on Huawei but the Telstra price hike confirms that Australians will now be paying for more for mobile services – and getting second-class 5G technology.

Local economics advisory firm Frontier Economics has already found that local 5G deployment costs will increased by at least $2.1 billion because of the 5G ban which it correctly forecast, “will be recovered from consumers through higher retail prices.”

Meanwhile, globally respected economics advisor Oxford Economics has already forecast that the Huawei 5G ban will mean 5G rollout costs in Australia increasing by 30% and says that those higher costs will mean 3 million Australians will miss out on 5G.

Prior to the 5G ban being imposed Huawei planned to contest Telstra’s 5G tender and attempt to win business from their long-time monopoly provider Ericsson.

Huawei’s exclusion meant that Ericsson were able to continue their single-supplier relationship with Telstra without facing new competition in 5G.

Jeremy Mitchell, Chief Corporate Affairs Officer at Huawei Australia, said:

“Telstra’s price hike reveals the inconvenient truth for the Federal Government – The Turnbull Government’s 5G ban on Huawei will have to be paid for by ordinary Aussies.

“Without Huawei adding price competition to the market the European duopoly vendors face no price competition and we now see consumers paying the price for that.

“Telstra’s price hike means an average family of four on some Telstra mobile plans could be paying another $700 per year for their 5G services than they were before.

“Australia already has some of the highest fixed broadband prices in the world thanks to the $151 billion spent on the National Broadband Network – we are now heading the same way on mobile too.”

Frontier Economics report:

Oxford Economics report:

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