How you can save Hundreds on Your New Galaxy S8

New Galaxy S8

Don’t get a Galaxy S8 Under Contract

The first critical question to ask is what value adds are important to me

The landscape of phone plans and the list of things you need to consider when choosing one is very different to what it was just 12 months ago. Major additions to phone plans over that time are the ‘free’ extras offered by the major phone companies now, as part of their plans. These ‘value adds’ can include free access to music ( streamed audio ) or sports content and make a big difference to your choice.

That means that the first critical question to ask is what value adds are important to me. If sport or other value adds are something you’re interested in, we suggest you consider one of the phone companies which offer them – Telstra, Optus or OVO Mobile. This single factor could be more important to you than the price for any other area. We explain more below.

Buying your Galaxy S8 outright and adding a SIM yourself can save you hundreds of dollars.

Next to the plans with their funky new ‘value add’ inclusions, we also need to consider the alternative to establish what the best value alternative you have available to you.  Buying your phone yourself and adding a SIM from a SIM Only provider is the next best option for most. In this case, SIM providers do not give you a phone ( that’s why you’re buying it yourself ) they just provide the phone services you need – voice, SMS and data.

Buying your Galaxy S8 outright and adding a SIM yourself can save you hundreds of dollars as we show below.

How will data will the Galaxy S8 use ?

In February 2017, the average data bundle size chosen by visitors to this site was 2.5GB.

We study the people who come to this site and the plans they pick. In February 2017, the average data bundle size chosen by visitors to this site was 2.5GB. That’s about in line with what the ABS ( Australian Bureau of statistics ) say people use.

We suggest phone plans which have at least 4 GB of data for the Galaxy S8.

However, the factors we can see suggest the S8 will continue the trend of data consumton we have seen happen for some time now. The S8 is likely to use more data than any device preceding it. The Galaxy S8’s stand out feature is it’s large ‘infinity screen’. The Galaxy S8 also has the latest, greatest processor, 4G / LTE  data speeds and new voice based personal assistant Bixby. All of these services will increase the data you use in your plan.

Research suggests that the larger the screen, the faster the processor, the more data you will need. As a result, we suggest phone plans which have at least 4 GB of data for the Galaxy S8.

Optus Prepaid $30.00 offers better value than Yomojo Prepaid $39.90

Both cost around $35
Prepaid month to month

  • Deal 1

  • Per Month

    $30.00

  • Voice

    Unlimited Voice and SMS in Oz

  • Data

    10.0 GB

Both use exactly the same Optus network.

Network

  • Deal 1

  • Per Month

    $30.00

  • Voice

    Unlimited Voice and SMS in Oz

  • Data

    10.0 GB

Both use exactly the same Optus network.

Network

 

What ‘extras’ are available to me ?

So, consider the value adds you’ll get if you get a phone under contract. Check the details of the plan you pick. They will often include…. :

  • Streamed audio:
    Streamed audio services include access to Apple iTunes Music store (with Telstra) and a choice of access to IHeartRadio, Google Play Music, or Spotify . We think Optus own the streamed audio space as a result of their breadth of partnerships. We even gave them an award for their streamed audio services ! The data you use to stream the audio will not come out of the data allocation for your plan, it’s ‘zero rated’.
  • NRL, AFL, Netball:
    Telstra has some great sports ‘properties’ available to them that they provide to their customers. If you like the NRL, AFL or Australian Netball, you will be able to watch them.
  • Australian Gymnastics and turbo charged sports content :
    OVO Mobile,  are a smaller phone company which offer some revolutionary services, including access to zero rated  Australian sports content amongst a broad range of other sports rights including drag racing.
  • EPL:
    Optus have the exclusive rights to the English Premier League ( EPL )  on their plans although they charge extra for it, on top of the phone plan service you buy from them.
  • Parental lock:
    Again, OVO Mobile offer a unique service on some of their lower end plans. If you buy the $9.95 or $24.95 plan, from OVO, you will receive, as part of your service ‘Family Zone’  to protect your children on these ‘pocket money’ phone plans.

The relative novelty of these plan ‘value add’ inclusions makes them difficult for many to understand. Unfortunately, as we have noted  there is no agreement within the industry yet as to how these ‘value adds’ will be explained.

The fact that data is not charged for in providing many of these services to you is the key element to focus on.

Optus $40.00
vs OVO Mobile $34.95

Prepaid month to month

  • Deal 1

  • Per Month

    $40.00

  • Voice

    Unlimited Calls & SMS in OZ

  • Data

    15.0 GB

  • Data free music streaming on selected apps.

NETWORK

Both use Optus network.

  • Deal 1

  • Per Month

    $40.00

  • Voice

    Unlimited Calls & SMS in OZ

  • Data

    15.0 GB

  • Data free music streaming on selected apps.

NETWORK

Both use Optus network.

 

There are two groups of users

Having taken a few moments to go over the value add services available to you, we’re left with a couple of ‘sets’ of people. Which are you ?

  1. Those who find value in (are prepared to pay for) the value adds we’ve mentioned:
    These users will likely pick their phone plan based on the sports or content extra that they want to see. For these people, picking a Samsung Galaxy S8 out, under contract is probably the best bet.
  1. Those who want a classic plan:
    Everyone else is looking for a standard phone plan. That included Voice, minutes and SMS. Without paying for unnecessary ‘value adds’ this group can save money.

How to save hundreds of dollars

The maths varies according to device and plan but our general advice is that, if you can afford it, you will find it cheaper to buy the phone outright yourself and add a SIM to it.

The Galaxy S8 is no special device when it comes to consideration of this question. We have been weighing the relative merits of buying a phone outright vs getting it under contract for some time.

The maths varies according to device and plan but our general advice is that, if you can afford it, you will find it cheaper to buy the phone outright yourself and add a SIM to it.

Phone contracts with phone companies usually extend over the course of the 24 months. You will see that, below, we have run the numbers with this in mind. We have compared the two alternative courses available to new Galaxy S8 users. On one side, we consider the phone and data inclusions you will get if you go for the classic 24 month contract. On the other side, we consider the maths of buying the phone yourself ( for example, at Kogan )  and adding a SIM from a SIM Only provider.

Why pay more ?

Both Cost Around $50
(Month to month agreements)

  • Deal 1

  • Per Month

    $50.00

  • Voice

    Unlimited Talk and Text in Oz

  • Value

    25.0 GB

Both use the Optus 4G network.

Network

  • Deal 1

  • Per Month

    $50.00

  • Voice

    Unlimited Talk and Text in Oz

  • Value

    25.0 GB

Both use the Optus 4G network.

Network

 

Actually, those savings are probably on the shy side….

The reality of the maths is that the savings we have shown here will likely be exceeded over the course of the 2 years we’re considering.

The headlines we have included here do not explain the whole story. The reality of the maths is that the savings we have shown here will likely be exceeded, for many, over the course of the 2 years we’re considering.

  • The calculations we’ve used talking here about new phones:
    Not everyone needs to have a new phone. If you can wait to purchase your S8, there will be cheaper alternatives out there which can further lower your cost. Refurbished or second hand phones, for example, can make the bills much smaller.
  • Your data usage is increasing within a contract, it can trap you:
    We call the effect data deflation and we’ve talked about it extensively. In simple terms, your data usage will increase during the course of the contract you take, if you want a ‘free’ Galaxy S8. If you are not in a phone contract, you will be given that data. Phone companies are constantly adjusting their data inclusions up to stay competitive. If you are shopping around, you will see these changes and be able to move to a plan which benefits. If you are trapped in a contract, you won’t see them and you will have to pay on top of your plan for the extra data you need which is often a good deal more expensive.

Summing up the Galaxy S8 SIM Only

Especially for any kind of realistic data plan inclusion, it is much cheaper to buy the phone yourself and add you own SIM. The finding is consistent with similar work we’ve done for the release of new ‘flagship’ devices ( like the iphone 7 ) No wonder the majority of people now get their phone this way.

Optus is clearly betting, as Telstra and OVO are, that content / entertainment are the key elements of interest in phone plans now. Which raises the question, do people want to squint at their phones to watch this kind of content ? For those who are happy not to consume sport in the way these phone companies are providing it, the result can be savings of hundreds of dollars over the course of a contract.

 

Neil Aitken

Having worked in 3 countries for 4 telcos on both voice and data products, Neil is in a position to give you the inside track. Get beyond the marketing messages to the best plan for you.