What is a Minimum Total Cost ? (MTC)


In this article, we explain what a ‘Minimum Total Cost’ (MTC) means to you.



Overview – Minimum Total Cost – What Is It ?

Minimum Total Costs are a regulatory requirement the phone companies have to provide you. They have the following charachteristics.

SIM Only and Prepaid plans which do not have multiple month commitments do not have to show Minimum Total Costs.

What services are covered and what services are not covered by an MTC ?

Unfortunately, exactly what plan features are charged for as part of your monthly service fee depends entirely on the plan.

Additionally, there have been some changes in the last year or so which have made it even harder to determine what is included in your phone plan. Entertainment services are now provided by some telcos. Phone companies provide access to the English Premier League, AFL / NRL  and streamed audio services. Whether access to these services are ‘zero rated’ (i.e. included in your MTC) or not will have a material impact on your bill.

What’s included in an MTC ?

Here are the general guidelines to use when considering your MTC. Remember, though, as we’ve said, MTC inclusions vary by plan so make sure you’re clear before you sign up.

What services are not included in the Minimum Total Cost ?

Again, while it depends on the specifics of your plan, these are the services for which you may well be charged an amount on top of your MTC. As you can see, there are a few. Careful, they add up.

Minimum Total Cost – the most common mistakes

How can I check what is and what is not covered in my MTC ?

Every phone plan has to have a clear CIS or Customer Information Statement. You will find one on the phone plan providers’ site, near the phone plan name, if you’re working through the checkout process. The CIS will tell you clearly what is and what is not included in your phone plan.

Remember, the MTC is the minimum you will pay. And they’ll make you pay it!


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