Telecommunications giant Telstra is set to drop its prices for fixed line broadband services due to the number of customers moving to other ISPs.
Chief executive David Thodey said at an investor update in Sydney that the sizeable decline in users is “not good”, and that price cuts were “imminent” as a result.
Tech analysts have suggested Telstra is long overdue for a price cut, as smaller ISPs move into the market with cheaper services that provide higher download quotas.
Sales growth of Telstra’s fixed internet services fell from 20.5% during 2007-08 to 13.3% during 2008-09. It is not yet known by how much Telstra will drop prices.
Patrick Stafford is a freelance journalist and a former deputy editor of SmartCompany.
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