Top 6 cheap phone deals as major telcos Optus, Vodafone, Telstra fight for your cash

Aussie consumers could cut their phone bills in half simply by shopping around but many pay a ‘loyalty tax’ instead.

AUSTRALIANS are missing out on hundreds of dollars worth of savings simply by paying a “loyalty tax” to their current phone provider, experts have warned.

But there are significant discounts on offer from smaller mobile carriers and fewer compromises than there used to be for those willing to shop around.

The warning comes as major carriers raise prices to meet inflation, and analysts say more customers will look to switch if other telcos follow their lead.

The price of some mobile phone plans is rising in Australia.

Telstra and Optus raised the price of their mobile phone plans in July by as much as $4 per month, and Finder tech expert Angus Kidman said consumers who accepted the charge without comparing their plans to others were likely to be paying too much.

“Don’t get sucked into pay the loyalty tax,” he said. “So many people, when they get their phone plan, they just stick with the same provider and that’s a really bad idea because typically you won’t get the best deal that way.

“Don’t get lazy because laziness does not pay.”

The cheapest phone plans available with Telstra and Optus are currently $58 and $49 respectively, but similar plans from discount carriers, including TPG, Boost Mobile, and Mate, offered similar inclusions for almost half the price.

Mr Kidman said all Australian phone carriers offered month-to-month plans, making it easy to switch between providers, and most plans included unlimited national phone calls and text messages, making data allowances their biggest selling point.

“Look at the data, understand what the conditions are,” he said.

“There are significant savings to be had and if, you’re looking at saving $20 or $30 a month, it’s worth putting a little bit of time into working out how that’s going to work out for you.”

Finder tech expert Angus Kidman warns consumers to shop around for the best mobile phone plan. Picture: AAP Image/Mick Tsikas

Jason Boys, from Port Macquarie in New South Wales, said he saved $90 per month – or $1080 per year – by switching mobile phone plans for his family of four after shopping around for the best phone, electricity and gas plans.

His two daughters, aged 14 and 16, moved from Telstra to Circles.Life plans, saving $70 a month, while he and his wife chose $10 monthly plans that suited their modest data needs.

“That’s a big saving in these times,” Mr Boys said.

“A lot of the bigger providers try to scare people and say you don’t get the same service and you miss out, but I don’t think that’s true.”

Research from Telsyte showed fewer people switched phone providers during 2021 than in previous years, down to 13 per cent, but managing director Foad Fadaghi said that number was likely to jump to 17 per cent when price increases hit, and it was up to major carriers to win back customers.

“We could have a period like 2018, where competition over prices enters the market,” he said.

“There’s an opportunity for premium carriers to give all their plans unlimited data to introduce a truly worry-free experience.”

SIX PHONE PLANS TO SAVE YOU BIG DOLLARS

Circles.Life $25/m: Users will unlock a generous 50 gigabytes of data per month, unlimited calls, text and multimedia messages on this plan that uses Optus’ 4G network. Plus, the price of plans are frozen until 2024.

Amaysim $30/m: This 30 gigabyte phone plan also comes with an extra hook: unlimited international talk and text to people in countries including Canada, China, India, the UK and US. Amaysim uses the Optus 4G network.

Felix Mobile $35/m: This discount telco keeps this simple by offering one plan with unlimited calls, text messages and all-you-can-use data at speeds up to 20 megabits per second. Users can also add international calls and texts for $5 a month, and international roaming with 4GB data for $20, with a year to use it.

Mate $25/m: The “better mates” plan includes 22 gigabytes of data but also throws in a year-long subscription to Tidal music while it’s active, unlimited calls and text, unlimited international calls and text messages to 15 countries, and it uses Telstra’s 4G network.

TPG $30/m: For the first six months, this 45 gigabyte mobile phone plan will cost just $15 per month. It’s also one of few discount plans to include access to 5G, though only until October 26, and it uses Vodafone’s network.

AGL $25/m: Even energy company AGL is offering phone plans now, and this 15 gigabyte plan costs $20 per month for its customers, and nothing for the first three months. It uses Optus’ 4G network and features unlimited calls and text messages.

Originally published as Top 6 cheap phone deals as major telcos Optus, Vodafone, Telstra fight for your cash