Telstra will scrap all 1800 mobile plans, replaced with just 20

Telstra is axing all 1800 of its different mobile plans for consumers and small businesses and replacing them with just 20 new core plans over the next three years.

The telco will also scrap excess data fees for mobile customers that reach their download limit. Starting next month, Telstra customers' download speeds will be capped at 1.5 Mbps after reaching their download limit.

The company said in a statement that the new approach to selling was thanks to Telstra's investment in digitisation, and that the new core plans would be backed by a new digital service that removes complexity.

In addition to the new plans, customers will also be given the option to swap to a different Telstra plan at any time.

Telstra group executive of consumer and small business Vicki Brady described the new approach to mobile plans as being "modular" in that customers would be better able to customise the services they receive and pay for.

"We are redesigning our product proposition to be modular, so that households and businesses can build their own plans based on what’s most important to them," Brady said.

"And all of this will be much easier for customers to manage than it is today, with an intuitive, digitally led experience that gives them clarity and control over their services."

She added that Telstra would make four more major product and service announcements over the next 12 months.

The telco said it would also introduce more incentives to convince customers to have multiple services with Telstra.

The changes to its product line-up was announced on Wednesday as part of the Telstra2022 strategy, which included a bevy of drastic changes in an effort to reduce costs, improve customer experience and turn the company's financial performance around after years of disappointing results.

The most drastic of those changes will see at least 8000 jobs cut over the next three years. Telstra will also spin out its fixed networks infrastructure into a new company called Telstra InfraCo that will sell services to wholesale customers and NBN Co.