The 3 tips everyone looking for a deal on their phone must know
You only have to read in the press to realise that Optus, Vodafone and Telstra are at it again. They’re raising the price of their plans. It’s tough to work in telco. at the moment. Fierce competition has cut phone companies’ margins and they’ve responded by putting up their prices.
However, there are a series of insider secrets that only the lucky few know. The team at WhatPhone have worked in the phone industry for the last 10 years. We’ve presented these insider secrets here as top tips so you can get what are literally the best SIM Only deals in Australia.
Tip 1 : Save heaps by getting a SIM Only Deal with an MVNO
An MVNO (or a Mobile Virtual Network Operator) buys access to primary ( like the one owned by Vodafone, Optus or Telstra ) network in bulk. Then they resell it to customers. These MVNOs provide their own flavour of customer support ( that means they have their own call centers. ) They typically perform their own marketing and, of course, they manage their own billing. An MVNO you might have heard of is Virgin Mobile.
MVNOs buy minutes and data in bulk from the major phone companies and pass the benefits of the cost reduction they get on to their customers.
Just to be clear, the network access they buy from the network operator (Optus, Vodafone, Telstra) uses exactly the same towers and relay facilities as the primary carrier. For example, Virgin Mobile Australia provide their customers access to the exact same network as Optus customers get.
As a result, people get the exact same phone coverage from the MVNOs that they choose, that they would from the major carriers. Most MVNOs get the same access and network improvements at or very near the same as the provider’s own retail customers. The primary difference between MVNOS and the tier one networks are the plans they offer. And the key difference for MVNO plans is that they’re cheaper.
Why have MVNOs become so popular recently ?
Recent MVNOs, like Vaya and yatango.com have built their businesses by undercutting the high rates the tier 1 telcos are providing their customers. Basically, the major phone companies charge a lot, the smaller ones don’t.
The result is a trend that caters to “tiers” of usage. Every tier provides you with a bit more text, data and voice. As you use any of these, you fall to the next tier automatically.
Why MVNOs offers are better than those of Primary Carriers:
Here are some important points to take into account when choosing an MVNO provider :
- Shop around : Your usage will impact which MVNO to choose for the best deal. For lower usage customers, or average usage, we recommend Vaya. For higher usage, or those who are looking for certainty, we recommend Amaysim. ( See above for a bit more detail. )
- They’ll sell you a SIM Only : No MVNOs lock you in to 2 year contracts (multi-year plans). Rest assured that if you find a deal elsewhere which is better, you’ll be able to move to it once you’ve finished with the payments for the months you’re in.
- Cancel when you like : With no contract, you can cancel anytime you want. You won’t suffer ETPs ( they’re the Early Termination Payments that you might be subject to with other phone companies if you try and leave a commitment early. )
- Make sure you get a phone which is unlocked : The phones you pick up from the major phone companies in Australia, it might be locked to their network. If you’re going to use an MVNO SIM, you’ll need one which is not tied to the network.
Tip 2 : Know your usage
Each of the major MVNOs are focussed on addressing a different segment. A segment is just a group of users. If you identify with any of the descriptions below, you are likely in the segment. The plans offered by the MVNO will appeal to you – and, if you’re prepared to give them a go, you’ll get a great deal on a big network without the big price tag.
Take a look at your bills for the last few months. Establish what you actually paid, not what the minimum monthly commitment was.
Tip 3 : Know what to look out for with different MVNOs:
You may have to compromise depending on your particular circumstances, if you go with an MVNO. In the interests of total transparency, here are the ‘gotchas’ which you might want to consider, before you sign up to one.
Some only offer 3G network access :
If you’ve got one of the latest phones, you might want super fast data access. That means you may want 4G. All of the major phone companies offer access to their 4G network with their core plans. Of course, if you have a phone which is more than a year old, it’s likely not even 4G enabled and this won’t present a problem to you. Equally, super fast data may not be important to you. Find out more about Australian network phone coverage here
MVNO coverage is only as good as the major networks :
Your network service is only as good as the carrier that’s partnered with the MVNO. An example: if Vodafone Australia’s coverage is no good for you in your area, then going with Lebara is not going to get you better coverage. You can check the coverage maps of each MVNO on their website.
You won’t get the telcos’ unique plan features :
There are particular plan features that each phone company has which you might not get with a value deal. For example, Optus offer ‘auto add’ a data bundle which means you just can’t get a hugh phone bill from them. Telstra have a prepaid plan which includes free calls at nights and weekends. Optus’ prepaid offering includes the innovative $2 days plan – a range which charges you only on the day you use them. The competition in Australia has created a lot of variety for your custom. Going with an MVNO will get you a great deal – but any one of these plans might be right for you, too.
Most MVNOs have online presence only :
There are no physical stores that you can take your phone in to if you want to talk to someone. Just to be clear, that’s not to say the support offered by MVNOs is of low quality. Amaysim are currently Roy Morgan’s best performing phone company for customer service.
Do I choose a traditional carrier over an MVNO ?
The key to getting a good deal in telco is the same as getting a good deal in any industry. You just need to have the best information possible. Having worked in the industry for a long time, that’s what we’re trying to offer you here. In short, we recommend MVNOs because they offer almost identical service to the major phone companies but charge only a fraction of the cost to do so.
Once you’ve figured that out, you really need to have a good understanding of your usage. Consider your normal monthly usage so you can find the right MVNO plan for you. Do your homework, establish your usage over the last 6 months to a year. Then feel free to use the Whatphone Vaya and Amaysim reviews
Ask yourself these questions when making your decision.
- How do the inclusions of the MVNO SIM only plan compare to the inclusions of the major telco plan I am comparing it to ?
- Does the network of the MVNO work in my area?
- Am I willing to purchase a new phone if I need to do I can use the MVNO network ?
- Am I okay with not having the option of going to a physical store for customer support?
- Am I okay with no free carrier to carrier minutes?
Summing up
Switching to an MVNO like Vaya, Yatango or Amaysim might be the right choice for you. Hundreds of thousands of Australians are moving every year. If you can afford to buy your phone outright and get a SIM only plan to cover the network access, whatever your usage, you will save money with an MVNO.
MVNOs are not a panacea. Use the advice we’ve offered on this page. Make sure you consider all of your calculations and carefully consider how much an MVNO will cost you to make an informed choice.