Aussie telcos see opportunity to raise prices on strong consumer loyalty, says Jefferies

Aussie Broadband

24/03/2025 24:50

Updates with share moves

** Shares of Aussie Broadband  gain as much as 1.1%, TGP Telcom TPG.AX gain 0.2% and Telstra TLS.AX falls 0.1%

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

** Survey shows 26% of mobile service users might pay up to A$5 more, giving room for operators to increase prices - Brokerage

** Jefferies says low switch rates in the last 6 and 12 months limits TPG's potential growth post its Mobile Network Sharing deal (MOCN) with Singapore Telecommunications STEL.SI owned Optus

** Brokerage says 60% of TLS's mobile customers also use their home internet service, suggesting price increase potential after a planned speed upgrade in 2025

** Jefferies sees TLS as well positioned due to its premier network, strong brand, and loyal customers, and anticipates price increases this year

** Communication services sub-index .AXTJ flat YTD

 (Reporting by Kumar Tanishk in Bengaluru)

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