Phone wars: Telstra ups ante on Optus over iPhone 6 discounting

Sarah Homewood
By Sarah Homewood | 9 September 2014

Telstra has followed Optus in offering $450 credit to switch to the provider as the launch of the new iPhone 6 looms.

Optus yesterday announced that it will put $200 credit towards early exit fees, and an additional $250 credit towards upgrading handsets in a bid to lure new customers.

Telstra's now followed suit but is also discounting its new phone deal, which sees customers eligible for a new handset every year.

Usually an additional $10 a month, Telstra is wiping that cost and is also offering customers who sign up to a new eligible Mobile Accelerate Plan the ability to choose between 1GB of extra data to use in Australia or $1,000 worth of calls and MMS.

Based on historical growth trends following each new iPhone release, Morgan Stanley Research predicts that surging demand for Apple’s iPhone 6 will grow Telstra’s domination of the local mobile market and win it an extra $500 million in annual revenue, The Australian Financial Review reported yesterday. That growth, naturally, would come at the expense of its rivals. Morgan Stanley reckoned Optus would remain flat while Vodafone Australia would lose 6% of customers.

However, Vodafone won't be entering the price war with a spokesperson telling AdNews that customers are already able to upgrade to a new handset in the last three months of their contract.

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