Compare phone plans and save big bucks on your data

Mobile phone contracts are being replaced by a new wave of consumer behaviour that could cost people plenty.

Australians are abandoning traditional mobile phone plans and instead buying their own handsets, sparking a fresh call to check they’re not wasting money on data.

About two thirds of consumers now buy their phones outright, up from 20 per cent just five years ago, according to research by telco comparison website Whistleout.com.au.

“Five or six years ago 80 per cent would buy their handset on a plan in-store and be effectively forced to get a plan from the one provider,” Whistleout spokesman Kenny McGilvary says.

“Now that’s changed, and people are hanging onto their phones for longer,” he says.

No-contract plans and prepaid deals have surged in popularity and are bringing big savings to consumers prepared to shop around. And it’s simple to switch providers and keep the same phone number.

SHOP AROUND

“If you haven’t looked at what’s available or spoken with your provider about a better deal, you are probably missing out on $20 a month savings for the same kind of inclusions on your phone plan,” McGilvary says.
That’s $240 a year, for every year that people don’t take action, and for some consumers the losses can be larger.

“The telco industry is so competitive that prices drop and inclusions increase all the time,” McGilvary says.

“The market moves, but people often don’t move with it.”

Almost all phone plans today come with unlimited talk and text so the big decision is around data.

Network providers Telstra, Optus and Vodafone typically charge the most for their plans, with smaller players piggybacking of those networks and often charging less because of their lower overheads.

Consumer’s aren’t signing phone contracts but still should check their costs. Picture: iStock

BELLS AND WHISTLES

McGilvary says some people’s mobile data needs may have reduced during the pandemic as people travel less, which means they can lean more on home and office Wi-Fi.

“The big carriers offer some great additional inclusions like data-free music streaming and access to live sport, but if you only need the basics from your phone plan then definitely consider the smaller, less well-known providers,” he says.

Moose Mobile CEO Dean Lwin says there is nothing new in the world of mobile phone technology “so you can buy a slightly older model outright, save more than a thousand dollars, and the best thing is you probably won’t notice the difference when you use it”.

DATA-DRIVEN

“Data is definitely the key component consumers look at when deciding which telco to go with,” he says.

“All providers give unlimited calls and everyone uses either the Optus, Telstra or Vodafone networks so there’s no difference there.”

Lwin says the price variation between providers can be huge, sometimes “double or triple the cost”, because some rely on people not bothering to check their plans.

A key step in saving money is understanding how much data you actually need and use.

“You don’t want to be paying $50 to get 80GB when you could be paying $15 because you only need 5GB,” Lwin says.

“Don’t set and forget – just like all your other bills it’s important to review at least yearly,” he says.

“Make sure what you sign up for is flexible. You don’t want to sign up a contract that can’t change if your circumstances change.

“And monitor your usage – make sure your telco has a good app so you can track where you are during the month.”

@keanemoney

PREPAID AND NO-CONTRACT PLANS

• Moose Mobile $19.80 SIM Only, $19.80 for 20GB

• Spintel $24.95 Mobile Plan, $19.95 for 20GB

• iiNetMobile 55GB Plan, $20 for 55GB

• Circle.Life 20GB Monthly Plan, $22 for 50GB

• Lebara Mobile $24.90 Small Plan, $24.90 for 25GB

• gomo $25 subscription, $25 for 36GB

• Optus Prepaid Epic Data $30 recharge, $30 for 40GB

• Telstra $30 Pre-Paid Mobile, $30 for 27GB

• Vodafone $40 Lite Plan, $35 for 50GB

Source: Whistleout.com.au. Most plans have bonus or promotional elements that revert to higher rates after a certain time or number of recharges. Prices correct at 20 April 2021