Pros and cons of cheap mobile plans
Beyond spending less (duh!), consider these aspects:
Pros
- Flexibility. Most cheap mobile plans are contract-free. If you're unhappy with the service, you can simply switch to another cheap provider.
- Big range of providers. While we're all familiar with Telstra, Optus and Vodafone, there are plenty of other smaller providers that share the same networks but at a fraction of the price.
- Bundles. You have the option with some providers to save an additional $5–$10 when you bundle with an energy or Internet plan.
Cons
- Promotional prices. Great for the first 6 months, but remember they'll revert to the full price after that.
- Less data. You can't expect to pay low prices and get loads of data.
- Fewer call inclusions. Australian calls and texts might not be unlimited and international calls may not be included at all.
- SIM only. If you want to purchase a device with your phone plan, you will need to look at more expensive plans on contracts.
Comparing cheap mobile phone plans
Price matters, but that doesn't mean you need to skimp. There are 2 main factors to consider when picking the best cheap mobile plan for your needs:
- Data
Consider how much data you use. You won't find many plans with unlimited data under $20 but you can definitely find plans offering between 10GB and 20GB a month. No matter how much data you're after, a good benchmark for value is to get at least 1GB or more for every $1 you spend.
- Promotional periods
Many providers offer extra data and a lower price for the first 3-6 months. To maximise savings, switch to a different plan once the promotional period ends.
Cheap mobile plans: Key things to check
Really cheap phone plans tend to cut corners. That's fine as long as you find a plan that cuts corners that don't matter to you. Here are the key ones to look out for.
Expiry
Many cheap phone plans are prepaid plans with weird expiry periods. These can be as short as 5–7 days, which is a dodgy way to trick you. Be careful with plans that costs $1 or $2. We don't list this kind of slop on our tables, but you might find it out there.
Calls and texts
Most phone plans, even cheap ones, include unlimited calls and texts. But there are some plans that bill you extra, like the $4 a month Flip plan. It's a good idea to avoid these by paying just a couple of bucks more for an unlimited talk and text plan.
Data rollover
Some cheap mobile plans offer data rollove,r which is great if you don't use up all your data. Just keep in mind that you need to recharge your plan on time for the rollover to take effect.
Data limit
On many cheaper prepaid plans, it's game over once you hit your data limit. You'll need to recharge for more data. If you plan to use lots of data, you might be better off on a slightly more expensive plan with more monthly data to be safe. On cheap postpaid plans, you could be hit with excess data fees, such as $10 for every 1GB you go over.
Coverage
Most cheap phone plans are sold by Mobile Virtual Network Operators (MVNOs). Basically they're resellers of Telstra, Optus or Vodafone's networks. Before signing up, check which network you'll be on.
- Telstra MVNOs (except for Boost) only get access to part of the network, which covers 98.8% of Australians.
- Optus MVNOs get full access to the network, covering 98.5% of the population.
- Vodafone MVNOs get full access to the network, which covers 96% of Australians.
Are smaller networks with cheap plans worth it?
Small phone plan providers are fine, and there's no real catch. Most of them are resellers of a bigger network, but are still very legit businesses. There are a few cowboys out there, but any of the providers on our comparison tables are the real deal.
Because they use the phone networks of the 3 big telcos, MVNOs are able to offer much cheaper plans. They're not paying to maintain the cell towers and other infrastructure, so their overheads are low and they can pass the savings on to you.
The main difference you may find with a mobile plan from an MVNO compared to 1 of the 3 major providers – Telstra, Optus and Vodafone – is that their plans may have fewer bonus features than the bigger players - stuff like getting Optus Sport at a discount, for example.
Which types of mobile plans are the cheapest?
Some of the cheapest plans are those with fewer inclusions targeted at people who don't need very much data (or none) at all or will rarely use their phones. If that sounds like you, a pay-as-you-go mobile plan might be right for you.
If you want to pay upfront (and save money in the long run), a long-expiry plan with inclusions that don't expire until 3–12 months might be better.
Frequently asked questions
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