[Ben Hocking]

Australians are paying for increasingly faster broadband and extra mobile data that they may not need.

The Australian Competition and Consumer Commission’s (ACCC) Communication Market Report shows that Australians are paying more for their broadband and mobile phone services than they were a year ago but are receiving faster NBN speeds and more data allowances in their mobile plans in return.

For people who had an existing plan that already met their needs, it is unclear if the higher speed or extra data is sufficient trade-off for the higher price.  

The report shows that in 2020-21 an average mobile consumer on a post-paid contract used only 11.8 GB of data per month, compared to a median data allowance of 35 GB per month.

Mobile consumers pay more for more
The mobile network operators, Telstra, Optus and TPG, increased prices across a range of their flagship products this year. The price of entry level pre-paid mobile services rose by 16.2 per cent on average in 2020-21, as a result of increases to the cost of basic plans and reductions in the expiry periods.

“Reducing the expiry periods on prepaid plans from 35 and 42 days to 28 days is a price increase by stealth. Over a year, it means consumers are recharging more often, and therefore paying up to 25 per cent more for their mobile phone service,” ACCC Commissioner Anna Brakey said.

While average mobile prices rose, Telstra, Optus and Vodafone have moved towards a ‘more-for-more’ model in which they offer 50-100 per cent more data across their plans at a higher cost.

“While consumers are getting more data allowance than before, it is unclear if they want or need it, as an average person isn’t currently going anywhere near using the average mobile data allowance,” Ms Brakey said.

The ACCC is concerned that since the merger of TPG and Vodafone in 2020, consumers are paying more for mobile phone plans. With the market now heavily concentrated with just three players, prices on many popular plans have risen as price competition is muted.

Telstra, Optus and Vodafone now account for over 91 per cent of the total retail mobile phone market, and almost 95 per cent of the post-paid market.

Do you get close to using the data allowance on your phone? Have you noticed that prices for your mobile phone plan have increased?

[RnR]

Have you noticed that prices for your mobile phone plan have increased?

My price has just been reduced substantially in cost by Telstra with a 3-fold increase in data allowance included.

[Alan]

I do all my internet work at home so I don’t need much data on my mobile.  

I get 1GB data per month and as I am on no social media I never use all of this.

All I want my phone for is to make calls and send messages. This costs me $11pm   A bargain.

[Suze]

Alan

that sounds like a good plan

May I ask who the plan is with ???

[Alan]

Hi Suze, 

That plan is with Pennytel but I have a separate sim card in my tablet.

The sim in my tablet is with Amaysim and costs me $10PM and, just recently, they upgraded me from 2GB pm to 4Gb pm and they also now let you roll over any unused data. Currently I have 8GB from the last 2 months and 4GB not used this month so I have 12 GB sitting there. Unless I watch sports or play online games, there’s no way I’m going to use all that data.

This is an even better bargain that the first one.  

I’ve just had a look and it appears that I’ve got the 4GB pm because I’ve been with them quite a while.  Newcomers seem to get 2GB pm but that is still carried over to the next month if you don’t use it.    https://www.amaysim.com.au/plans/mobile-plans/

[Suze]

Thanks for that info Alan – will check it out

Currently I am with TPG NBN for which I pay $59 which is good when operating

but being on Fibre to the Node when it rains it does not work and continuously drops out.

I pay them an extra $17 a month for the mobile which I only use when I go out for GPS and emergency

which also recently disappointed me.

[Horace Cope]

Our mobile is with Boost, $20pm for 3GB data which is mostly unused. My mobile is for calls and texts and my PC is for the main internet use. The PC and landline is with Telstra, $75pm, which recently upped our broadband from 100GB to unlimited which suits just fine as we recently got Netflix and Kayo. We don’t shop around which is probably a mistake but we’re happy with our phones and internet and I suppose if it ain’t broke, don’t fix it.

[Alan]

It looks ok now Horace but when you were paying $75 for a landline and only 100GB pm …. that was a bit over the top. Most home broadband plans are unlimited nowadays.  I would use 100GB in a few nights.

The first 4K movie I downloaded was ” The Martian ” and it was 50GB. The movie “Midway” in 4K was 62GB.

[Cogar]

I use TPG for my household data at $69.99 per month (around 50 bps) for unlimited and I am supplied a phone line which charges extra for calls.  I never use the paid calls as my mobile offers unlimited included calls.  For my mobile service I use Kogan prepaid.  For around $120 per YEAR (down from $130) they offer unlimited phone calls and sms with 130GB data (up from 80 GB) that can be used  over the year.  I find their prices fluctuate a little through the year with specials.  They have a handy app that lets you know how much you have used.   They use the vodafone network and I couldn’t be happier.

[Lucca]

All hands on board here!!!

I have an elderly friend who wants a cheap reliable plan for pensioners. It’s a long time since I have been in the market for a mobile plan.

So to save my shoe leather looking around, can anyone suggest a cheap plan for this guy.

[Sophie]

Did some research and sent you an email Lucca. I am still with Telstra but there are a few cheaper options for your friend. Please check your emails.

[Author]

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