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Won’t hang up: Australians remain loyal to their mobile provider despite price hike

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Australians are remaining loyal to their mobile providers even if it costs them hundreds of dollars, according to new research by Finder.

A nationally representative survey of 1,058 respondents revealed 2 in 5 (41%) people have been with their mobile provider for 6 years or more, despite a whopping 55% experiencing at least 1 dropout or lack of service in the past 12 months.

The research found almost a third (28%) would remain loyal to their provider even if their bill were to increase.

The same amount would wait until their bill increased by $10 a month – $120 a year – before switching.

More than 1 in 10 (12%) would wait until their bill increased by $20 or more a month – $240 a year – before considering a different provider.

Mariam Gabaji, utilities expert at Finder, said Aussies are overly devoted when it comes to their mobile providers.

"It's easy to remain attached to the same provider you've been with from the get-go, but you won't be getting the best bang for your buck.

"Not comparing your options can end up costing you more in the long run."

Finder's Consumer Sentiment Tracker found that in September, mobile phone users paid $56 a month for their phone bill, up from $49 in February.

At present, you can get as much as 120GB of data for $25 a month, or if you are less of a data user, you can get 10GB of data for $10.

Gabaji recommends assessing your plan and whether you're getting the best value for money.

"If you're using significantly less data than your allowance per month, then it might be time to downgrade to a cheaper plan.

"Understanding your mobile habits will help you determine which plan is best suited to your needs.

"Don't overspend on a plan you're not taking full advantage of – defaulting on a bill can negatively affect your credit score.

"And remember, when you switch, you can keep your phone number."

Gabaji urged Australians to compare their plan against others in the market and check to see what inclusions they could be getting for a better price.

"It's also a good idea to call your provider and see if they're willing to upgrade your plan to keep you as a customer.

"If not, there are loads of providers who will be happy to make you a better offer," Gabaji said.

Baby boomers are more likely than any other generation to stick by their provider despite the price hike, with 37% admitting they will not switch even if their bill increases, compared to 22% of millennials and 24% of generation Z.

By how much would your mobile phone bill have to increase for you to switch providers?
I would not switch providers if my bill increased28%
$20 or more per month12%
$15 per month13%
$10 per month28%
$5 per month19%
Source: Finder survey of 1,058 respondents, August 2022

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