Save big on your phone plan

HOW TO HANG UP ON MOBILE CONTRACTS AND GO IT ALONE

Australians are abandoning traditional mobile phone plans and instead buying their own handsets, which makes getting the best deal on data more important than ever.

About two thirds of consumers now buy their phones outright, up from 20 per cent five years ago, according to research by telco comparison site Whistleout.com.au.

“Five or six years ago, 80 per cent would buy their handset on a plan instore and be effectively forced to get a plan from the one provider,” says Whistleout spokesman Kenny Mcgilvary.

“Now that’s changed, and people are hanging on to their phones for longer.”

No-contract plans and prepaid deals have surged in popularity and are bringing big savings to consumers prepared to shop around. And it’s simple to switch providers and keep the same phone number.

SHOP AROUND

“If you haven’t looked at what’s available or spoken with your provider about a better deal, you are probably missing out on $20 a month savings for the same kind of inclusions on your phone plan,” Mcgilvary says. “The telco industry is so competitive that prices drop and inclusions increase all the time. The market moves, but people often don’t move with it.”

Almost all phone plans today come with unlimited talk and text so the big decision is around data.

Network providers Telstra, Optus and Vodafone typically charge the most for their plans, with smaller players piggybacking of those networks and often charging less because of their lower overheads.

BELLS AND WHISTLES

Mcgilvary says some people’s mobile data needs may have reduced during the pandemic as people travel less, which means they can lean more on home and office Wi-fi. “The big carriers offer some great additional inclusions like data-free music streaming and access to live sport, but if you only need the basics from your phone plan then definitely consider the smaller, less well-known providers,” he says.

Moose Mobile CEO Dean Lwin says there is nothing new in the world of mobile phone technology “so you can buy a slightly older model outright, save more than a thousand dollars, and the best thing is you probably won’t notice the difference when you use it”.

DATA-DRIVEN

“Data is definitely the key component consumers look at when deciding which telco to go with,” he says. “All providers give unlimited calls and everyone uses either the Optus, Telstra or Vodafone networks so there’s no difference there.”

Lwin says the price variation between providers can be huge, sometimes “double or triple the cost”, because some rely on people not bothering to check their plans.

A key step in saving money is understanding how much data you actually need and use.

“You don’t want to be paying $50 to get 80GB when you could be paying $15 because you only need 5GB,” Lwin says.

“Don’t set and forget – just like all your other bills it’s important to review at least yearly,” he says. “Make sure what you sign up for is flexible. You don’t want to sign up a contract that can’t change if your circumstances change.

“And monitor your usage – make sure your telco has a good app so you can track where you are during the month.”