Strife in the fast lane: could data prioritisation create a “class-based connectivity system”?

Australia’s Telstra has introduced a data prioritisation scheme for customers, allowing those who can afford it to pay extra for preferential connectivity. Is quality, not quantity, the future of data pricing, or could this create a two-tier network?

All data is equal, but some data is more equal than others – for a price.

That’s according to Telstra’s latest customer terms update, reported by WhistleOut Australia, which revealed that, starting in December 2025, the company will roll out data prioritisation to some of its mobile plans.

Customers who opt for a plan with data prioritisation would get faster speeds and lower latency than those who don't, who may find that their “data speeds may be slower… during congestion periods.”

This does not mean non-priority users are always slow; only when the network is congested will priority customers be given preferential connections. However, Telstra has indicated that if congestion is particularly severe, prioritised traffic may also be impacted to avoid unfairly degrading others’ service.

Telstra has not yet launched specific pricing plans, but it’s expected to be included in higher-tier packages, bundled with other premium perks like enhanced coverage for rural customers, or satellite options.

This marks a significant shift in Telstra’s service differentiation, in line with the company’s Connected Future 30 strategy to “reinvent how [it] captures value” for the rest of the decade; instead of just selling more data, Telstra wants to “capture value” by charging for higher priority, lower latency and better uplink speeds – in other words quality, not quantity.

The data prioritisation scheme seems to be integrated into select mobile plans going forward in an effort to increase uptake, as opposed to their current Mobile Speed Optimiser add-on, introduced in 2023, which grants subscribers a “typical uplift of 15% in mobile data speeds” for an extra $10 a month.

Many networks already offer high-priority service levels, but this is usually reserved for emergency services such as Verizon Frontline or AT&T’s FirstNet. Data prioritisation could, however, be the kind of meaningful differentiation for a telco looking to justify premium pricing. After all, who wouldn’t pay a bit more for a noticeably better experience when networks are under strain, rather than simply more data that you may not even use?

What Telstra is effectively introducing is a “business class” for those willing to pay, giving them a smoother service when it matters without significantly impacting the economy experience.

Widespread adoption of prioritised plans, even by a small percentage of customers, could boost revenues significantly, though similar schemes have previously had a negligible impact.

In fact, Telstra could learn a thing or two from Optus, which has tried data prioritisation not once, but twice.

For $119 a month, Optus One included data prioritisation and other benefits such as dedicated 24/7 customer support, international roaming and exclusive content. By 2021 though, new sign-ups had been discontinued; the exact reasons weren’t clear, but it’s possible that demand was limited, and that despite the high value, managing this subset of users wasn’t worth the complexity.

In 2023, they tried again, offering short-term priority boosts for about $2 for an hour that customers could purchase on demand. While innovative, the creation of a “VIP path” stirred controversy, and Optus quietly phased out the feature by the end of that year.

Can Telstra learn from Optus’ mistakes? Done poorly, it could spark discontent among customers – many of whom will inevitably find this unfair, especially considering that mobile data was previously a level playing field. Indeed, Optus’ priority boost scheme was accused of fostering a “class-based connectivity system” among subscribers.

There’s also the risk that prioritisation could be seen as Telstra double-dipping. Customers already pay for data and a premium network, so some may feel they have no choice but to pay again to avoid slower speeds during times of congestion. If these improvements are only modest, consumers might question the value for money – particularly if extreme congestion results in no prioritisation at all.

In jurisdictions with net neutrality protections, a paid speed tier would likely not be permitted, yet Telstra’s data prioritisation is technically distinct from net neutrality violations, since it’s a quality-of-service tier that doesn’t throttle any particular content. It only kicks in during periods of congestion and applies uniformly to all traffic of lower-tier users, while any customer can get priority by choosing a higher plan.

However, from the perspective of proponents, Telstra’s move does conflict with the spirit of net neutrality. Though as another recent case in the UK has shown, you cannot depend on telcos to follow the spirit of the law without backing this up with actual enforcement.

The FCC’s Protecting and Promoting the Open Internet order banned arrangements where an ISP favours some traffic over others “in exchange for consideration (monetary or otherwise) from a third party.” Likewise, EU net neutrality regulations permit fast lanes only in limited circumstances, and only if they do not impair connectivity for other users; in their eyes, if there is a fast lane, there must therefore be a slow lane, even only relatively speaking, which undermines the principle of equal access.

Telstra’s data prioritisation could be a win-win, provided that the “premiumisation” of its mobile data doesn’t come at the expense of basic service expectations – and that its customers are willing to pay to be more equal than others.

However, executing this kind of premium differentiation depends heavily on operational robustness. Telstra has had its share of billing difficulties in the past, and adding prioritisation into the mix raises the stakes for accuracy, transparency, and customer experience. This is precisely where a modern, agile BSS/OSS platform becomes essential, allowing telcos to:

• Design tiered offerings that maintain perceived value at every level, ensuring that even non-prioritised plans meet an acceptable standard of connectivity
• Offer seamless upgrade paths and incentives through self-service portals or customer communications
• Integrate loyalty, rewards and engagement tools within plan tiers
• Monitor sentiment among lower-tier users and react accordingly to reduce churn

Ultimately, the success of any premium tier hinges not just on network performance, but on whether customers trust how it is delivered, managed, and billed.

Cerillion offers telcos a modern, composable BSS/OSS suite to monetise premium services without alienating the rest of the base. Contact us to find out more.