85% of people are buying phone plans costing less than $30

People are buying phone plans costing less than $30

Due to increasing technology and fierce competition, the average prices of Australian phone plans are dropping. Switching to a prepaid carrier, which many people are electing to do, cuts down on the average monthly bill without sacrificing coverage. As Australians tend to hold onto their smartphones for longer and can therefore search for prepaid plans, customers are no longer forced to enter into a 2 year contract with their carrier. With the option of prepaid contracts, customers can choose a plan according to their requirements. According to a Whatphone survey, 85% of people prefer plans costing less than $30. These days, spending less on a phone plan doesn’t mean you enjoy fewer benefits – it means you pay for what you need.

With the increasing competition, carriers are offering lower-priced phone plans to attract customers. Close to 85% of people prefer buying phone plans costing less than $30.

Why do people prefer low-cost phone plans? 

Only pay for the data you need  

You might not need high-speed unlimited data, but many people are pushed by their carrier to pay more for plans that include excessive amounts of data. According to a survey by market research firm NPD group, the average customer requires only 5.8GB of data per month. If customers are using only 6GB on average, for most people the extra cost of unlimited data is an unnecessary expense. To understand how much you are personally using per month, it’s beneficial to accurately assess data usage and choose a plan based on your needs. Customers are increasingly searching for plans that cost less than $30 because most carriers offer more than 5GB data for a plan that costs around the $20 – $30 per month mark. For example, plans from Optus starts at $7.95 per month, which offers 2GB data with unlimited calls and SMS, whereas the $15 plan from Telstra offers 45GB of monthly data along with unlimited SMS and calls. Apart from data inclusions, a customer gets to enjoy data free music streaming of Apple Music. Whether you’re on a contract or a prepaid monthly plan – there is no point in spending more than you have to.

With the option to choose from a variety of phone plans, customers today no longer have to pay for data which they’re not going to use.

How much data you need? Source

Choose your network wisely

The speed and quality of the internet access provided depends on the network. The major telcos with fixed infrastructure (Telstra, Optus, Vodafone and potentially TPG in the future) all offer slightly different coverage and services. Most of the carriers providing low-cost plans offer excellent coverage, although customers in more remote areas should check the coverage on the telco’s website before choosing a plan. Excellent network coverage is a major factor when it comes to choosing a network, because it matters little how much data you have if you don’t have high quality calls and internet access in the areas you frequent.

What to expect from a plan under $30?

In Australia, companies such as OVO mobile, Optus, Kogan, and Boost offer fantastic plans for under $30 per month. Customers get plenty of inclusions that allow them to talk, text and browse for a very reasonable price. All plans under $30 offer 4G data, and most of these companies use the network towers of Telstra, Optus and Vodafone, which means that customers don’t have compromise on the quality of calls or data, even if they are paying less. These plans are much cheaper than the 2-year contract, and there is no pressure to buy a new phone every contract period.

Keeping things low

Plans from small phone companies tend to offer better value than the big brands. Telcos across Australia have seen a decline in their revenue because people prefer low-cost phone plans, and small companies are providing them with the option. Lower cost base and innovative business models are slowly driving the change towards lower cost prepaid plans. If you want the latest phone every year or two, and you don’t want to buy it outright, it’s likely you’ll have to stick with the higher cost of a lock-in contract. If you have any flexibility, however, a pre-paid plan under $30 could save you a lot of money.

Due to the surge of small phone companies, telco such as Telstra, Optus, and Vodafone has seen a significant decline in their profit.

The falling prices of telecommunication services 

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.