Some great deals on offer as big telcos go downmarket

For the first time, all three of our big telco companies have budget-friendly brands. They are wholly owned subsidiaries launched by the premium product suppliers to gain a slice of the price-focused market.

Like Jetstar, the Qantas subsidiary that was launched as an aviation price disrupter in 2004, many copycats have followed the business strategy – from banking to energy to insurance.

Telstra, Vodafone and Optus all now offer mobile phone plans via subsidiaries aimed at the low-cost market.Credit: Penny Stephens

NAB launched UBank, Commbank bought Bankwest, AGL bought PowerDirect and Medibank bought AHM Health Insurance.

Telstra also jumped on the bandwagon, launching the Boost Mobile brand, which is aimed at the youth market, and Belong for budget-conscious broadband and mobile phone users.

Last week, Optus and Vodafone-TPG revealed their own budget-friendly offerings.

Optus launched online pre-orders of its new service, Gomo. There is only one plan for starters: 18GB of data and unlimited national calls and SMS for $25 a month, plus unlimited international calls to 15 selected countries.

There is also a special deal for the first 5000 customers – a plan cost of just $1 for the first month and, if you stay for three months, you get the next three months for free.

Vodafone-TPG launched Felix Mobile, which also has just one plan. For $35 a month, you get unlimited national calls and data – albeit capped at a speed of 5Mbps.

Felix also boasts to be 100 per cent carbon neutral: “We plant a tree a month for every active customer”.

The strategy mirrors the marketing of Belong, which is also 100 per cent carbon neutral and has plans starting from $25. Hence its slogan: “Mobile that doesn’t cost the earth”.

Telstra’s Boost is pitched mainly at younger customers, offering just pre-paid plans starting at $20 that include international calls and text to 20 selected countries.

By comparison, Telstra's full-service plans start at $55 a month and include sweeteners such as a free, three-month Foxtel Binge trial and access to sports broadcasts, including the NRL, AFL and A-League.

Most Optus full-service plans also include Optus Sport as standard.

So, how do they all compare?

Like-for-like comparisons are difficult because some of the premium telco brands now rarely offer smaller plans.

However, here is how the budget-friendly offerings stack up against the smallest plans provided by the premium brand suppliers:

PREMIUM

• Optus: 10GB for $39
• Telstra: 40GB for $55
• Vodafone: 50GB for $35

BUDGET

• Optus Gomo: 18GB for $25
• Telstra Belong: 10GB for $25
• Vodafone Felix: Unlimited data for $35

If you do not need a lot of data or bonus features, low-cost operators offer great bang for your buck.

However, it is also worth considering some of the independent budget providers that pioneered cheap, BYO SIM-only mobile plans, including amaysim, Aldi Mobile and Dodo. There is now a lot of competition in the low-cost space – a win-win for consumers as long as these smaller carriers are not squeezed out in the rush.

Next up, watch out for some hot new energy deals from your telco provider, or conversely, phone plans from your energy supplier.

Telstra is looking to sell energy plans, AGL now owns telco Southern Phone, Origin Energy sells broadband and smaller internet providers Sumo and Dodo have been dabbling both in energy and broadband for some time.

Joel Gibson is the author of KILL BILLS! Catch his money saving segments on Nine Radio, TODAY or on Twitter @joelgibson