How to figure out which mobile phone plan is best for you
Lisa Du is director of ReadyTechGo, a service that helps people gain the confidence and skills to embrace modern technology.
Choosing the best mobile phone plan is a hot topic. There are so many providers out there, and so many options:
- How do you know who to pick?
- What do the inclusions mean?
- Prepaid or Postpaid?
A mobile phone plan to suit your needs
It's important to note that the first question I always ask clients is, “Are you looking for a new device, or will you be keeping your device and looking for a suitable phone plan?”
For this example, I will share one of our client’s experience.
Sandra has an iPhone that was given to her. She is not looking to upgrade her phone, but would like a new plan which suits her needs.
Sandra prefers to use the home phone to make calls, and only uses her mobile phone for SMS, Calls (when required if she is out and about), and Internet.
Sandra is currently on a monthly plan with Optus, paying $19 per month (this plan no longer exists).
Her $19 Optus plan includes the following:
- Up to 200 minutes of calls to Australian mobiles and landlines, calls to 13/1300 numbers
- 200MB of Data
- 10c standard nations SMS and MMS
Sandra feels like she has to be very careful when out and about, so she does not accidentally use her mobile data. She would like more flexibility without having to pay too much more.
Which plan should Sandra pick?
Provider
The Australian mobile phone scene is dominated by three major companies: Optus, Telstra and Vodafone.
These three companies have spent billions of dollars to develop the country's mobile and cellular networks. TPG is a player who is shaking things up by building Australia's fourth mobile network.
These days, there are many smaller mobile phone providers, who use the network of one of these large companies by leasing their cellular network.
The benefit of these smaller companies is that you can get cheaper deals as they don't spend as much on advertising and focus less on mobile phones, and more on SIM ONLY plans.
For example, if you choose ALDI, BOOST or WOOLWORTHS Mobile, you will be part of the Telstra Network.
If you choose AMAYSIM, DODO or IINET, you will be part of the Optus Network.
If you choose KOGAN, you will be part of the Vodafone network.
Depending on where you live, or where you travel frequently, this may influence your decision when choosing a mobile provider.
For example, my personal mobile phone is on the Optus Network, but when I used to work on mine sites, I had to get a Telstra sim as there was no Optus coverage in the mining towns.
For this scenario, Sandra is free to choose any provider as she lives in Metro Melbourne, and doesn't travel to rural areas.
Prepaid or Postpaid?
This depends on how frequently you use your mobile phone.
If you rarely use your mobile phone, and it’s purely for emergencies, I would definitely go Prepaid. With Prepaid plans, some plans require you to recharge every month (or you lose your credit), or there are long life plans (up to 1 year before you need to recharge).
For those of you who rely heavily on your mobile phone, there are both Prepaid and Postpaid plan options to consider.
Which should Sandra pick?
Looking at the large providers, I found the following options for Sandra:
OPTUS – $25 per month SIM ONLY plan (This is currently an online offer ending on 2/10/17. Usually $30 per month)
Includes:
- 2GB Data + 1GB Bonus (if you are recontracting)
- Unlimited Talk and Text
- Included Entertainment (which means Sandra can use apps like Spotify when out and about without chewing into her 2GB data allowance)
- Need to sign up for 12 months
- Tip: Although you sign up for 12 months, if you choose to upgrade your mobile phone during this time, you can do so without any penalties
TELSTRA – $39 per month SIM ONLY plan
Includes:
- 2GB Data
- $500 worth of talk and text
- Need to sign up for 12 months
VODAFONE – $30 per month SIM ONLY plan
Includes:
- 1GB Data
- Unlimited Talk and Text
- Need to sign up for 12 months
Straight away, the OPTUS deal looks like the best option.
However, if you were travelling to rural towns frequently, you may have to rule that option out, and consider Telstra instead.
Let's take a look at a smaller provider.
KOGAN MOBILE – Small sim only plan
Includes:
- 1.5GB Data
- Unlimited Talk and Text
Now, you have three options.
1. Recharge every 30 Days, and pay $16.90
2. Recharge every 90 Days, and pay $46.90
3. Recharge every 365 Days and pay $179.90
Runs on Vodafone Network
ALDI MOBILE – $25 per month SIM ONLY plan
Includes:
- 3GB Data
- Unlimited Calls and standard SMS
- 100 International minutes
- No contract
Runs on Telstra Network
TPG MOBILE – $15 per month SIM ONLY plan
Includes:
- 4GB Data
- Unlimited Calls and Text
- 100 International Minutes
- Unlimited Calls to other TPG Mobile and home phone numbers
- Need to sign up for 6 months
Now that we have looked at the smaller players, the TPG $15 per month deal looks pretty good to me!!
Sandra would save $48 per year by switching from her current $19 plan to this $15 plan and gain the following:
- 3.8 GB more data to use on her mobile phone each month
- She now has unlimited calls and text
And when switching providers, you can always keep your mobile phone number!
If Sandra chooses to stay with Optus, she could switch to the $25 plan. She will be paying an additional $6 per month or $72 more per year, but will gain the following:
- 2.8 GB more data to use on her mobile phone each month
- She now has unlimited calls and text
Providers change their plans all the time (usually to include more value), so it's good to frequently check to see if you are still on the best plan.