Cell phone plans: Which is best?

“Check your bill to see how much data you typically use. Remember, if you’re on a month-to-month contract, you can easily switch if you find you need more data than you initially thought.”

MVNO – The acronyms you need to know

Many consumers understandably default to the “Big Three” of Telstra, Optus and TPG (Vodafone’s parent company). They are Australia’s three largest operators and together they have built up the greatest brand awareness and market share to date.

However, the telcos that generally offer the best value for money are mobile virtual network operators, also known as MVNOs. Think Aldi, Boost, Woolworths Mobile or Amaysim, they all use the network infrastructure of one of the ‘big three’ but offer plans that generally cost a lot less. In short, the coverage you get is generally just as good, but cheaper.

“Switching to a smaller provider on the Telstra network is a great way to save money on your mobile service,” Kidman said.

“These providers offer the same Telstra network you’re used to, but are often much cheaper and without the need to sign a phone repayment contract.”

There are some downsides: some MVNOs don’t offer the same level of 24/7 customer support as Telstra or Optus, and you may not get some of the same benefits. But for the price/performance ratio, MVNOs are definitely worth considering.

Coverage

It may seem obvious, but one of the most important aspects of a phone plan is coverage. Telstra, Optus and TPG all claim to cover over 95% of the Australian population, but each covers different areas. There’s a slight TPG dead zone near my home, which means I’m better off sticking with a provider that uses the Telstra or Optus networks. Check your provider’s coverage map before you buy to avoid being stuck with no signal.

Bundles and Extras

Over the past five years or so, telcos have been working hard to add extra services to win customer loyalty. One of the biggest examples is Optus Sport, which is a key differentiator for football fans. Optus Sport was initially plagued by technical difficulties and buffering issues, but these have been resolved. Optus customers can save more than 70% on an Optus Sport subscription. Woolworths Mobile customers can save 10% on grocery shopping every month, while Telstra’s rewards program Telstra Plus allows customers to use points to buy cinema tickets, concert tickets and gadgets. Also check the prices of travel packages – Vodafone’s $5 per day international roaming fee is a good option for frequent flyers.

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eSIM

Surprisingly few people have heard of an eSIM, let alone understand how it works. An eSIM is a digital version of the physical SIM card you put into your phone. Most phones made in the last few years can use an eSIM (like the iPhone 11 or later, or the Samsung Galaxy S20 or later), and they make switching providers really easy. An eSIM means you can switch to a new provider in a matter of minutes, without having to worry about going to a store to buy a physical SIM card or waiting for one to be mailed in the mail. Not all providers offer eSIMs, so check first if your chosen provider does.

Ask your current provider for a better deal

Gather some information – how much you’re willing to spend, how much data you use, what competitors’ plans cost – and then call your current telco to ask for a discount. Most providers have a department dedicated to customer retention, and they’ll usually be happy to offer you a better deal.

Here are some of our picks for the best value mobile plans:

• Felix Mobile Entirely owned by TPG, the company will plant a tree for you every month while you’re a customer. The company offers unlimited talk, text, and data for $40 per month (as of Sunday, it’s on sale for just $20), but its data speeds are capped at 20Mbps, which should be fine for streaming Netflix or Spotify. The company uses the Vodafone network.
• More Telecom A relatively new company, it offers very competitive mobile and NBN plans using the Telstra network. The real value is its deal with the Commonwealth Bank: CBA customers get $5 off their phone plans for 12 months, and 10% off thereafter. Its 50GB plan is very affordable at $42 per month (or $31 per month for CBA customers).
• Snap Connections Using the Optus network, you can get a massive 180GB of data for 365 days for just $150. That’s a steal.

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