Why You Should Shop Around at the End of your Phone Contract

Phone contract

The best thing about phone contracts is seeing them come to an end. Here, we explain the opportunity that your contract ending provides and offer you what we hope will be the best independent advice you hear all week . Here are the reasons we think you should shop around at the end of your telco contract.

The phone companies rely on your laziness

Staff members on this website were employed for many years in the marketing and digital / online teams of the major phone companies. More than one of us had a chat like this with our manager as part of a development review : You never go far wrong by understanding your customers better and you never go wrong by selling to their laziness. These are remarkable statements but they are representative of what really happens inside big phone companies. We’ve heard similar phraseology, too – about appealing to people’s greed in adverts and using count down timers on websites to re-enforce their fear.

While the telcos Brands are designed to appeal to your more positive characteristics, attempting to inspire pride, optimism, tie in to your feelings of love for your partner and funny side, the truth of some marketing is that it seeks to take advantage of the more negative characteristics of human nature and some of the features of modern living.

Some ideas to consider when your contract ends

We want to provide the most transparent purchase process possible for the postpaid mobile category. We’re also not a massive fan of the ‘slightly different’ view that marketers in telco put on their products. The first thing you’ve got to be  aware of is your own thinking. Allow yourself some time at the end of your contract period to shop around and compare. You own your phone now and that gives you some options you didn’t have before. As a result of a phenomenon called data deflation, you are likely to get a whole lot more for your money now, than when you signed that 2 year agreement.

We estimate it takes less than 5 minutes to do the key things you need to, on the Whatphone site, in order to make an informed decision. We think you can save between 30% and 50% on your monthly spend if you do it right.

  • Consider smaller phone companies :
    Smaller phone companies like Lebara, OVO Mobile, Kogan Mobile and Boost Mobile are all MVNOs. MVNOs or Mobile Virtual Network Operators rent the networks of the bigger phone companies. For a variety of reasons we explain the reviews and articles we’ve linked to here, they can offer substantially better deals than you’ll get from the likes of Vodafone, Optus and Telstra.
  • Get a SIM, not an upgraded contract :
    More than 50% of Australians now have a SIM Only or Prepaid Plan. These typically come with an introductory offer and a month to month agreement. That means you can get great pricing now and, when you want to, move to a new SIM provider to get an even better deal.
  • Buy online !
    Telcos are the same as most other industries. If you buy online, you’ll get a better deal.
  • Keep your phone longer :
    The average tenure of an iPhone owner has risen from 24 months to 30 months in just the last 2 years. Most people evidently feel that the new iPhone is pretty much the same as the old iPhone. The longer you keep your phone, the lower your total cost of ownership.
  • Be a new customer :
    The best deals you’ll get are when you are a new customer at a new telco ! There is such fierce competition between the telcos, the sales channels all run on incentives to attract new customers. The truth is that internally, there is far more time spent acquiring new customers than retaining the existing ones ( which is kind of bananas when you think about it ! )
  • Play the game :
    On top of the core 2 months free offer, try starting a cart online at the operator site and then dropping out. If they offer the option of signing up to marketing materials then make sure you take it ( you can always unsubscribe later. ) Some of the phone companies will attempt to ‘lure you back’ to their site with a discount voucher or promotional code which they will email to you. Try some Google searches, some discount vouchers show up in internet chat rooms or forums.

Sources :

There are few more reliable sources than the ACMA for this sort of advicehttp://www.acma.gov.au/Citizen/Phones/Mobile/Phone-contracts-and-charges/mobile-phones-the-right-plan-for-you

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.