Telco customers paying the price for loyalty

LOYAL phone customers could be costing themselves unnecessary cash by sticking with the same provider and missing out on red-hot deals.

The telco industry is hotter than ever and customers are finally becoming wise to the cheaper deals on offer.

Research from financial comparison site Canstar Blue has found consumers who stick with their telco for the longest are Telstra customers (64 per cent), followed by Vodafone (57 per cent) and Optus (50 per cent).

But the report found of the big three telcos, Telstra customers are more likely to battle paying their bills – only 77 per cent can comfortably afford their payments, followed by Optus (84 per cent) and Vodafone (83 per cent).

Canstar Blue spokesman Harrison Astbury said for customers not tied down to a contract it was easy to switch telcos but there were a few key things to consider first.

“Unlimited calls and texts are pretty much a foregone conclusion with any plan over $15 these days so the next battleground for telcos is data,’’ he said. “If you’re a light user, 1GB to 2GB may be enough.

“If you’re a regular user you may need more than 5GB and if you’re a video watcher or Netflix user you may need more than 10GB.’’

He suggests savvy phone users hunt for a new deal at least every six months as the offers continue to be massaged by providers.

But Telstra’s head of mobiles Kevin Teoh said having a good deal wasn’t just about price.

“We believe that connectivity is important and we encourage customers to seek out the best value – not just the best price, but service, network, connectivity and plan inclusions, to get the plan that is right for them,” he said.

“To make sure all our customers enjoy a great network experience we offer Australia’s largest 4G footprint providing coverage to 99 per cent of the population.’’

Telcos offer optional “addons’’ enticing customers to get more bang for their buck.

These come at a cost and can include options such as datafree music streaming and entertainment packages.

Boost Mobile’s general manager Jason Haynes said it was vital for customers to “understand their habits and how they may change’’.

“The other thing that is also important is the network you are on and people generally don’t pay as much attention to that as they should,’’ he said.