Telcos bid for clients with deal freebies

EXPECT to get the digital equivalent of a “free set of steak knives” when you sign up for your next mobile phone plan as Australia’s telcos devise new ways to win over customers without cutting prices.

Optus will today launch new smartphone plans promising free subscriptions to Apple Music after stealing the exclusive deal from a rival, while Telstra has launched a loyalty program to retain customers, and Vodafone is adding sweeteners to phone deals.

But telecommunications analysts warn consumers should check the fine print in any contract, and consider whether the next handset they buy should come with 5G technology.

The telcos’ latest war for smartphone buyers comes just weeks after Telstra launched a “radical” overhaul of its phone plans, reducing 1800 different offerings to just 20 plan types.

Last week, Telstra also added “rewards” to its new loyalty program to retain customers, including discounted movie and AFL tickets, smartwatches and speakers.

Optus is firing back, offering new and recontracting customers a six- or 12-month Apple Music subscription – an offer the company won off Telstra.

Optus TV content and product development vice-president Clive Dickens said the new Apple Music packages would be offered with plans ranging from $45 to $120 a month.

Meanwhile, Vodafone has recently offered several sweeteners with its phone contracts, including a new smartwatch to go with Huawei P30 smartphones, a streaming entertainment subscription with the Oppo Rezo Z 4G, and a free smart speaker with the Google Pixel 3a.

Telsyte senior analyst Alvin Lee said Australians looking for a new smartphone or plan should buy carefully as more manufacturers would launch high-speed 5G handsets later this year.