By David Swan
The nation’s “big three” telcos – Telstra, Optus and TPG – have all lifted their prices recently (in many cases higher than the rate of inflation) so for many customers, the time is right to shop around for a new phone plan.
Telstra this week announced price rises to many of its prepaid and postpaid phone plans, lifting them on average by between $2 and $4 a month, joining Optus and Vodafone in recently bumping up prices. Telstra said the increase was a difficult decision but a necessary one to help it maintain investment in its mobile coverage and network performance.
Amid a cost of living crunch, however, customers would be wise to look at their options.
“There’s never been a better time for consumers to review their spending on telco services,” Telsyte analyst Alvin Lee said.
Telstra this week announced price rises to many of its prepaid and postpaid phone plans, lifting them on average by between $2 and $4 a month.Credit: AP
“If mobile service providers regularly review – and increase – their prices, users should be doing the same and shop around.”
So what are some things to look for, and what pitfalls should you avoid when choosing your next phone plan?
Data allowance – there’s such a thing as too much
One of the most common mistakes customers make is overpaying for data. The average Australian uses 10.5 gigabytes of mobile data each month, according to Finder. Its research found an average monthly cost of $42 a month for 10GB of data, yet Australians pay an average of $53 a month for mobile plans, meaning people are paying for more than they’re using. Pick a plan that best aligns with what you use every month.
“The main feature that matters with your phone plan is data. Virtually all plans in the market include free calls to mobiles and landlines in Australia,” Kidman said.
Angus Kidman is the editor-in-chief and technology guru at comparison site finder.com.au.
“Check your bill to see how much data you typically use. And remember if you’re on a month-to-month contract, you can easily switch if you discover you need more data than you originally thought.”
MVNO – an acronym you need to know
Many consumers default to the “big three” of Telstra, Optus and TPG, which owns Vodafone, and that’s understandable. They’re Australia’s three largest providers and between them have built up by far the biggest brand awareness and market share.
The telcos that typically offer the best bang for buck, however, are mobile virtual network operators, also known as MVNOs. Think Aldi, Boost, Woolworths Mobile or Amaysim, which each use network infrastructure from one of the “big three” but offer plans that generally cost far less. Put simply, you get coverage that is often just as good cheaper.
“Switching to a smaller provider on the Telstra network can be a great way to save money on your mobile service,” Kidman said.
“These providers offer access to the same Telstra network you’re used to, but often at much cheaper prices and without the need to lock yourself into a phone repayment contract.”
There are some trade-offs: some MVNOs don’t offer the same level of 24/7 customer support as Telstra or Optus, and you might not get some of the same benefits. But in terms of value for money, MVNOs are definitely worth considering.
Coverage
It might seem obvious, but one of the most important aspects of a phone plan is the coverage. Telstra, Optus and TPG all claim to cover more than 95 per cent of the Australian population, but each cover different areas of the country. I have a slight TPG blackspot near my house, meaning I’m better off sticking with providers using the Telstra or Optus network. Check the provider’s coverage map before you buy to avoid getting caught without a signal.
Bundling and extras
In the past five years or so, telcos have worked hard to add extra services to win customer loyalty. One of the biggest examples is Optus Sport, which acts as a key differentiator for soccer lovers in particular. Optus Sport was initially marred by technical difficulties and buffering issues, but these have been ironed out. Optus customers can save more than 70 per cent on an Optus Sport subscription. Woolworths Mobile customers can save 10 per cent on their grocery shop every month, while Telstra’s rewards program – Telstra Plus – lets customers buy movie tickets, concert tickets and gadgets in exchange for points. Also check how much travel packs cost – Vodafone’s $5 a day for international roaming is a decent deal for frequent flyers.
eSIMs
It’s constantly surprising how few people have heard of eSIMs, let alone grasp how they work. An eSIM is a digital version of the physical SIM card you put in your phone. Most phones made in the past few years can use eSIMs (the iPhone 11 or later, for example, or Samsung Galaxy S20 or later), and they make it super easy to switch providers. An eSIM means you can switch to a new provider in literally minutes, and not have to worry about going to a store to get a physical SIM card or wait for one to arrive in the post. Not all providers offer eSIMs, so check first if it’s available with your chosen provider.
Ask for a better deal with your current provider
Gather up some info – how much you’re willing to spend, how much data you use, how much competitors’ plans cost – and call your current telco to look for a discount. Most providers have an entire department dedicated to customer retention, and more often than not, they’ll be happy to offer you a better rate.
Here are some of our top picks for best value mobile plans:
- Felix Mobile is fully owned by TPG, and it plants one tree on your behalf every month that you’re a customer. It offers unlimited talk, text and data for $40 a month (just $20 as a promotional price until Sunday), though its data speeds are capped at 20Mbps, which should be fine for streaming Netflix or Spotify. It uses the Vodafone network.
- More Telecom is a relatively new entrant on the scene, offering highly competitive mobile and NBN plans using the Telstra network. Where the real value comes in is its deal with Commonwealth Bank: CBA customers gain $5 off their phone plan for 12 months, then 10 per cent off ongoing. Its 50GB plan for $42 per month – $31 for CBA customers – is very solid.
- Catch Connect uses the Optus network, and it offers a whopping 180GB of data for 365 days for $150. A great catch.
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