Telecommunications giant Telstra has “surprisingly” been named the most valuable brand in Australia, according to a respected global ranking.

Telstra was the highest-rated Australian brand in the 2016 Brand Finance Global 500, beating out Woolworths, ANZ, Commonwealth Bank and Coles.

The telco jumped 35 places to be ranked 110 in the Global 500, despite fighting increasing competition, particularly in the mobile communications sector.

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While acknowledging that out of all the “strong brands” in Australia it was “surprising” Telstra was No.1, University of Adelaide adjunct lecturer in marketing Dr Cullen Habel said it was a deserved result.

“People view Telstra’s core product as superior which is a bit of a bind for customers and it makes them really, really need something from one brand,” Dr Habel told The New Daily.

“Telstra wins as a result of pioneering advantage, it was the original and the first doing telecommunications in Australia.

Its high brand awareness was a big factor in the rise. Photo: AAP

“That carries a whole bunch of awareness that is a magical brand asset.

“It is a huge asset that they have inherited as a result of being the first in the market.”

Dr Habel said Telstra had a very strong advantage in the area of “key [brand] associations”.

“Telstra wins because if you really need to be contactable anywhere, Telstra gives you the best chance,” he said.

“That is the key association that Telstra has locked up.

“The No.1 association that you want is that you can do what you promise you will do, and that’s deliver the service the best.”

The Brand Value metric for the Global 500 ranking was determined by measuring factors like loyalty, promotion, marketing, staff satisfaction and corporate reputation.

Brand Finance calculated the value a company would pay to license its brand should it not own it.

This involved estimating future revenue and working out a royalty rate for the use of the brand.

Eight Australian brands made the list of 500.

Brand Finance Australia managing director Mark Crowe agreed Telstra’s “brand strength” was its greatest asset in the ranking.

“It is testimony to Telstra’s continued brand strength which has driven a 23 per cent increase in value despite only a 3.6 per cent increase in revenue,” said Mr Crowe.

He said that for Woolworths, which dropped to No.2 in Australia, and Coles, the challenge was to fight off competition from German-owned low-cost supermarket Aldi.

Telstra not perfect

But Aldi also loomed as a problem for Telstra, if research from consumer group CHOICE was to be considered.

In its 2015 Mobile Service Provider Satisfaction Survey, CHOICE ranked Telstra below average and below Aldi’s mobile offering.

Aldi ranked second in the survey behind Amaysim, with Telstra only beating Optus and Vodafone.

It was a bleaker story painted for Telstra in CHOICE’s 2015 Internet Service Provider Satisfaction Survey, with the telco ranked at the bottom of a seven-company field.

Its worst satisfaction rating was 57 per cent on the “value for money” rating.

Moreover, Telstra was slammed by consumers late last year for imposing an increased “discriminatory” charge on customers who chose to have their bills mailed, rather than sent via email.

Telstra customers who received their bills on paper via mail or pay monthly accounts face-to-face would be slugged $3.20 a bill, up $1.20 from the old $2 charge.

A letter sent to a customer to announce the fee hike.

That increase was later reneged, with customers who receive a paper bill now paying $2.20, while there is a $1 charge for in-store payment. Telstra recorded a profit last year of $4.3 billion.

At the time, affected customer Helen McKenzie told The New Daily: “Telstra has been increasingly getting nasty. Your overdue payment is $15 as well, and it was already $2 for the paper bill and now they’re putting it up.”