Telstra may be in big trouble if it does not keep up with the broadband pricing war.

Telstra's BigPond is losing its title as most sought broadband provider after rival Optus raised its download limits without touching its current price range.

Optus's latest strategy has left BigPond as the most expensive broadband provider, which is $100 more expensive than market giant TPG for 200 gigabyte-per-month plans.

Optus, TPG (Total Peripherals Group) and AAPT, other broadband providers, offer unlimited plans to their subscribers where users can download as many data every month. Telstra, on the other hand, lack unlimited plans from its services.

Telstra Consumer executive director Peter Jamieson told media yesterday that the company will continue to monitor the market to guarantee that they can still compete in the marketplace. He said that Telstra will adjust prices if necessary.

''It is not just about prices or included data, it is about innovation, it is about providing services that meet the needs of a broad range of people," Mr. Jamieson said.

However, an industry analyst commented that Telstra is now way behind after Optus changed its gears and did not keep up with the competition. Internode and iiNet also increased their download limits as well.

"They (Telstra) have to cut their fixed broadband prices. Their pricing at the moment is above market rates, especially following the Optus reduction, " telecommunications researcher Nathan Burley of Ovum said.

Christian Guerra, a Goldman Sachs JBWer analyst, said that fixed broadband market in Australia has dramatically changed, but wireless market is still growing.

''Operators now face a 'market share' game as opposed to a 'market growth' game,'' Mr. Guerra stated in a recent research note.

Mr. Guerra said Telstra will not seek advice with its profit guidance this year due to its low market share.

Mr. Jamieson confirmed that Telstra's market share figures will be disclosed with full-year financial results.