Don’t fall into the big telco trap of overpaying on monthly bills

I’ve written before about mobile phone plans and how much money many Australians are quietly overpaying every month.

The reason I’m revisiting the topic now is simple: despite all the advertising noise and shiny new plans, very little has changed where it actually matters. Telstra and Optus remain costly, while alternative providers continue to offer strong value using the same underlying networks.

One of the most common concerns I hear from clients is that leaving Telstra or Optus means giving up coverage or reliability. In practice, this is rarely the case.

Providers such as Aldi Mobile, Tangerine, Belong and Boost operate on the Telstra or Optus wholesale networks. That means the signal reaching your phone is often exactly the same, just without the higher price tag attached to it.

If you want to save money, for most seniors a sensible place to start is with a smaller data allowance. About 10-15GB per month suits most people I work with.

Aldi Mobile currently offers a plan at $23 per month with 12GB of data and unlimited calls and texts. Tangerine offers comparable plans at $25 per month.

These plans comfortably cover calls, texts, emails, browsing, photos and the occasional video call, and unused data rolls over to the next month. If you do need more data later, you can simply increase your plan the following month. What you cannot do is get a refund for unused data.

A fair concern with these lower-cost providers is the lack of physical shopfronts. You cannot generally walk into a store if something goes wrong.

That said, many people find the trade-off worthwhile. There is no sales pressure, no surprise add-ons appearing on the bill, and no attempts to up-sell services you did not ask for. Billing is simple and charged monthly, with no lock-in contracts.

The savings are where this really becomes meaningful. Many Telstra and Optus plans start around $55 per month and quickly rise to $65 or more.

When you compare that with a $23 to $30 plan from an alternative provider, the difference can easily be $30 to $40 every month. Over a year, that adds up to about $360 to $480-plus. For many retirees, that  is money that could go towards rising  living costs, a short trip away or simply peace of mind.

It is also important to know that you keep your mobile number when you change providers. Your number belongs to you, not the telco, thanks to changes made by the Australian government a while back. Switching is far easier than it used to be, and in most cases your phone continues working throughout the change.

On a personal note, our mobile service at Greyology runs on the Aldi Mobile network, including all of our business mobile phones. My own personal mobile does as well. We made that decision years ago after testing it properly and we have never had an issue. Calls are reliable, data works exactly as expected and coverage has been solid in metropolitan areas and when travelling.

If it is good enough for a tech support business that relies on being contactable, it is more than suitable for everyday use.

For those who prefer simplicity, long expiry plans are also worth considering. Paying once per year rather than every month appeals to many seniors, and alternative providers offer annual options at far lower prices than Telstra or Optus equivalents. Aldi Mobile offers a plan of $289 for 300GB of data.

The message here is simply that loyalty is rarely rewarded in the mobile phone industry. Taking the time to review your plan, understanding what you actually use and considering alternatives that cost $23 to $30 instead of $60 or more can result in genuine savings without sacrificing quality.

If switching feels overwhelming or you would like someone to check if your current plan suits, Greyology can help.

 Edin Read is founder and chief technician at Greyology Tech Support for Seniors. Visit greyology.com.au