👉 Background: Telstra is the largest mobile network operator in Australia with over 22.5 million retail mobile services. Back in May, Telstra announced that it would completely restructure its business, including cutting up to 2,800 jobs by the end of this year.

👉 What happened: Telstra also warned that price increases in-line with inflation was a thing of the past. And now, just two months later, Telstra has announced its mobile phone plan prices will increase by 4% - 5% across its OG Telstra brand but also cheaper brand Boost.

👉 What else: While customers weren’t quite doing the happy-dance, investors most certainly were after Telstra’s shares jumped 2.5% to their highest level since April.

What's the key learning?

💡To boost your profit, you need to focus on the few key levers that truly drive your business forward. Increasing revenue or decreasing costs.

💡 Businesses usually have more control over their expenses so the impact on profit can be felt immediately. That's why Telstra downsized its workforce, cut its product offering, or reduced its office space.

💡 But when the cost-cutting doesn't get you to the required profit, then you need to start making some moves on the revenue side too. And sadly for us consumers, Telstra aren’t the only ones doing this:

• Vodafone increased its prices by between  6% - 9% in January
• Optus raised prices for new customers by 5% to 6% in May.