Mobile phone mega data: why telcos are suddenly generous with monthly download allowances

IN the market for a new phone plan? Prepare to be wooed. Australian telcos are launching unprecedented data allowances in a bid to win more customers.

Business woman texting on her phone – outdoors

IN the market for a new phone plan? Prepare to be wooed.

Australian telcos are launching unprecedented data allowances in a bid to win more customers, with aggressive bonus and double data offers, family data sharing, and rollover plans all on the table.

UNAFFORDABLE PLANS: Young Australians locked into phone contracts they cannot afford

‘UNLIMITED’ COURT ACTION: ACCC accuses Aldi Mobile of misleading ‘unlimited’ plans

The competitive environment, branded “crazy” by one commentator, is fuelled by price-cutting from smaller telcos, and increasing demand for internet downloads to deliver music and video streaming on the go.

Industry experts say the offers may also finally help consumers avoid bill shock that affects one in five Australian phone users, though potential customers are advised to make a move soon.

Big data ... Australians downloaded an average of 1.9GB on their mobile phones in three months during 2014, according to the Australian Media and Communications Authority.

The country’s fifth largest telco kicked off the latest mega data trend, with Virgin Mobile launching “data rollover” plans that gave subscribers a second chance to use their data allowance the month after it would have expired.

Australia’s biggest telco, Telstra, followed by adding as much as 7GB of “bonus” data to its postpaid plans.

Small but aggressive prepaid services Amaysim and Aldi Mobile joined the movement last month, with Amaysim adding an extra gigabyte of downloads to two of its three plans for no extra cost, and Aldi introducing a 4GB XXL plan for $45 before raising data allowances in other plans.

Big carriers ... Even Australia’s largest telcos are discounting the price of mobile phone data. Photo: Sam Mooy.

But the “craziest by far” data plans came from Vodafone this month with its “double data” offer, while Optus introduced “family sharing” plans to allow relatives to pool their download allowances.

The result is a phone market in which users can download 13GB of data each month and make unlimited national calls and text messages for $80.

WhistleOut editor Joseph Hanlon says the industry-wide price reductions are setting a new standard for phone plans, even though they began as “timed discounts”.

“These big data bonuses are definitely a response to pressure coming from the smaller telcos, like Aldi and Amaysim,” he says.

“We can see how popular these telcos are becoming from searching behaviour on WhistleOut, and interest in these plans is changing what consumers expect to see in phone plans across the industry,”

Hanlon says time limits for the data-loaded plans are also “continually expanding,” giving consumers more time to make a switch.

Double deals ... Vodafone is currently offer “double data” deals, dubbed the “craziest” of the current bonus data offerings. Photographer: Simon Dawson/Bloomberg

Canstar Blue spokesman Simon Downes says data allowances have emerged as a key deciding factor in phone plans, with one in four users considering it of the “utmost importance”.

More generous data inclusions could also serve to limit complaints about excess data charges, he says.

“Our research has found that one in five adults has been hit with unexpectedly large bills and excess data charges are the most common complaint,” Downes says.

“Service providers are almost competing to be the most helpful … and consumers are running out of excuses for their own costly mistakes.”

Complaints about phone excess data charges to the Telecommunications Industry Ombudsman rose 4.4 per cent between January and March this year to 2078 complaints.

The rise follows a 90 per cent jump in mobile phone internet usage last year, according to the Australian Communications and Media Authority, with the average user now downloading 650 megabytes each month.

Consumers considering swapping plans are warned to pay attention to the expiry date of some new data offerings, however. While offers from Telstra, Aldi Mobile and Amaysim are ongoing, Vodafone’s double data deals end on June 2, Optus’s online bonus data offer ends on July 13, and Virgin Mobile’s bonus data will end on June 30.

Plan rivalry ... Australians considering switching to more generous data plans are warned to act before offers run out next month. Photo: Annette Dew.

DATA-PACKED PHONE PLANS COMPARED

Telstra $70 SIM-only 12-month contract

5GB data plus 1GB bonus data = 6GB

Unlimited talk and text

Optus $60 SIM-only no contract

Unlimited talk and text, 300 minutes of international calls

6GB data plus 2GB online sign-up bonus data = 8GB

Vodafone $60 SIM-only no contract

Unlimited talk and text, 300 minutes of international calls

4GB data plus 4GB bonus data plus 1GB online sign-up bonus data = 9GB

Virgin Mobile $60 SIM-only 24-month contract

Unlimited talk and text, $300 international calls and text

5GB data plus 4GB bonus data = 9GB

Amaysim $54.90 SIM-only no contract (top tier)

Unlimited talk and text

7GB data

Aldi Mobile $45 SIM-only no contract (top tier)

Up to 43,200 minutes talk, 50,000 SMS and 20,000 MMS messages

4GB data

Originally published as Mobile phone mega data: why telcos are suddenly generous with monthly download allowances