Telcos launch unlimited data options for mobile phone users

DATA-hungry customers are being warned new “add-ons” to their phone deals may not be the most cost-effective option. Here’s how to avoid getting hit with extra charges.

DATA-hungry customers are being warned new data “add-ons” to their phone deals may not be the most cost-effective option.

Intense competition in the mobile phone space has resulted in consumers being offered the deals, but many consumers would be better off simply choosing a new data plan.

Just this week two of the nation’s biggest telco giants — Telstra and Vodafone — revealed deals allowing consumers to pay up to $15 per month extra on top of their normal charges for additional services such as excess data and unmetered streaming.

MAJOR WIN FOR TELSTRA CUSTOMERS

FIVE STEPS TO GET A BETTER PHONE DEAL

It comes just months after Telstra was slammed for rolling out “unlimited” data plans that the Federal Court ruled were not unlimited.

Telstra has rolled out “peace of mind” deals allowing customers to avoid being stung by excessive data charges.

Instead customers’ phone speeds slowed once they chewed through a certain amount of data.

Financial services comparison website Finder’s spokesman Alex Kidman said “add-ons” on phone plans are not always the best option.

“Most users would be better served on a different plan,’’ he said.

“Considering the average Aussie has a 6GB data limit and rarely runs into excess data charges, unlimited data plans generally won’t be worth your while.

“Customers might be better off going with a higher data plan with 80GB for $65, rather than a plan with 55GB for $60 and then going for the add-ons.”

Mr Kidman said customers repeatedly going over their data limit should re-evaluate their plan

Telstra’s new “peace of mind” deal sees customers pay an extra $10 to avoid excess fees if they go over their monthly limit.

Customers should be hunting around for more competitive phone plans as competition in the mobile industry intensifies.

And Vodafone revealed they would give customers the option of adding on unmetered streaming services for up to $15 per month and capped at 1.5Mbps (megabits per second).

This includes options such as unlimited access to Netflix, Amazon Prime Video and Stan at $15 per month.

This is not included in a customer’s monthly data amounts.

Vodafone’s chief commercial officer Ben McIntosh said these deals are a big win for consumers.

“It has never been a better time to be a telco consumer, what’s happening is competition is heating up and competition is doing exactly what it is meant to do,’’ he said.

“Consumers are waking up and asking why they are paying so much more and getting so much less.”

@sophieelsworth