You may not have heard of some of the smaller telcos out there, but it’s worth comparing to see how much you could save for a similar product. Remember, the smaller companies are still using big-name networks.
Which phone company is on which network?
Each of the smaller phone companies works with one or more of the big cellular networks.
| Cellular Network | Description | Associate MVNOs |
|---|---|---|
| Optus | The Optus network provides 98.5% of Australians with 3G coverage, and 95.9% of Australians with 4G phone coverage. At present the Optus network covers approximately one million square kilometres. Until mid 2016, Optus will be the only phone company offering 4G access through it's MVNO partners. | Amaysim |
| Vaya | ||
| Telstra | Telstra 4G is 98% of the population. One of the big advantages of working with Telstra is their excellent coverage in rural areas. However, they have fallen behind their competitors when it comes to introducing 4G services. | Cmobile Blue |
| Boost Mobile | ||
| TeleChoice | ||
| Think Mobile | ||
| Vodafone | Australia's third largest phone company. They had a pioneering role introducing 4G mobile services a couple of years ago. It is estimated they have achieved 95.3% 4G coverage in metropolitan areas. | Cmobile Red |
| Lebara |
What network do Amaysim, Lebara and other smaller phone companies use?
Everyone in Australia knows about Optus, Telstra and Vodafone. They’re the 3 largest telcos in the country, and are the only companies with cellular networks (the towers, masts and other infrastructure that lets us use our phones to communicate).
Maintaining and improving a network is expensive. That’s why you’ll find the 3 top companies are also often the most expensive.
Cheaper mobile phone providers, such as Amaysim, Dodo and AGL, ‘borrow’ the network of one of the top 3 companies. These smaller companies, called MVNOs (mobile virtual network operators), are able to offer lower prices because they’re not paying for the ongoing costs of the cellular network.
They also tend to spend less on advertising and focus on plans rather than stocking phones and accessories.
The benefits of considering smaller phone companies
- Coverage by population is all about the same now :
Whether you choose Optus, Vodafone or Telstra, the proportion of the population covered by their 4G and 5G networks is within one or two percent of each other. Unless you live in the wilds of Australia, you can choose any of these networks and independent research says you’ll get a similarly strong signal for about the same proportion of the time as a Telstra customer. If you buy from a company like Boost Mobile which uses the entire Telstra network, you get exactly the same network as you would from Telstra itself. - No risk :
The providers we recommend have month-to-month or prepaid agreements. That means you can try them without risking the farm. Give them a go and if it doesn’t work for you, try someone new. - More data for your buck :
Many smaller telcos provide more data with their plans than the big 3 companies for the same price per month, or less.
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You can expect to find that smaller phone companies :
- Offer you major SIM Only plan cost savings.
All of the smaller phone companies in Australia offer SIM Only plans. From a customer’s point of view, buying a mobile and plan under contract from a big phone company is much more expensive than buying a phone independently and taking a SIM-Only plan. - Offer month to month agreements
Month to month means no contracts, so you can move to a new phone company whenever you want. Vodafone, Optus and Telstra only offer lock-in contracts of up to 36 months. - Have surprisingly good service
Smaller brands don’t have to worry about maintaining country-wide networks, which gives them more time to focus on customers. You’re more likely to talk to an Australian when you call smaller brands like Amaysim or Circles.Life with a problem. Best phone plan awards often go to MVNOs.
Why would big companies share their networks?
The answer, as usual, is money. The big brands make money from loaning their network to smaller brands. Some big brands even have their own smaller versions (like Telstra, with Beyond and Boost) that let them target different markets.
But there are also some regulations too. The Australian government ensures the big phone companies play fair with the spectrum (the frequency band allocation they rent from the government) they’ve been given. Part of the ‘fair play’ demands that the market stays competitive, which includes allowing smaller companies.
Are there any disadvantages to choosing a smaller phone company?
Smaller phone companies get the same network priority, but not always the same coverage.
Smaller phone companies get the same network priority as bigger phone companies. A cellular network does not discriminate between users any more than an electricity network assigns its direct customers more volts.
However, a smaller brand may not get full access to the network’s population reach. For instance, many smaller brands that use the Telstra network can use 98.8% coverage of the population, but Boost gets the full coverage of 99.6%.
That might help you make a decision if you live somewhere rural that’s not covered by that missing 0.8%.
It is worth noting that bigger phone companies are hairier marketing machines. MVNOs tend to focus on the barebones phone plan and attempt to keep it cheap. Smaller phone companies tend to rely on price and network quality, and that’s it.
Can I keep my phone number if I choose a smaller plan provider?
Yes, you can keep your existing phone number. The process of moving your number from one plan provider to another is called porting. Just enter your existing phone number into the online checkout as you start the porting process and your phone number will show up at your new phone company automatically.
Summing up
Smaller phone companies ensure healthy competition. They may also have smaller marketing budgets and fewer features, so compare before you buy.