Invest
Have you noticed the price of your mobile plan increasing?
The consumer watchdog has revealed that the three main telecommunication providers have recently raised prices, meaning millions of Australians are now paying more for mobile services.
Have you noticed the price of your mobile plan increasing?
The consumer watchdog has revealed that the three main telecommunication providers have recently raised prices, meaning millions of Australians are now paying more for mobile services.
According to a study released by the Australian Competition and Consumer Commission (ACCC), since July 2020 Telstra, Optus and Vodafone have increased the price of several postpaid plans and effectively increased the price of a range of prepaid plans by reducing their expiry periods, which in turn forces Aussies to recharge more often.
During the past 12 months, Telstra increased its postpaid mobile plan prices by between $5 and $15 per month.
However, the telco has also reduced the recharge expiry on 35- and 42-day prepaid plans to 28 days, which effectively equates to a price increase of between 25 per cent and 50 per cent over a year.
In May, Optus raised the price of all of its postpaid plans by $6 per month, which is an increase of between 8 per cent and 15 per cent. There has been no increase, however, in the cost of Optus’s prepaid plans.
Vodafone’s postpaid plans have also gone up by between $5 and $40 a month. However, the increases are currently accompanied by heavy discounting and temporary bonus inclusions.
Combined, the three main telcos hold 87 per cent of the total retail market and have more than 95 per cent of the postpaid market.
ACCC chair Rod Sims highlighted the concentration issue, with providers happy to spike up fees due to a lack of competition.
“Our analysis shows that consumers will now be left paying significantly more for a range of mobile phone plans at Telstra, Optus and Vodafone,” Mr Sims said.
“The behaviour of the three big telcos would suggest they are not concerned about losing customers to rivals.”
These mobile price increases follow the merger of TPG and Vodafone in 2020.
“The ACCC opposed the merger of TPG and Vodafone because we were concerned it would lead to higher mobile prices and result in three similar providers with little incentive to compete strongly,” Mr Sims said.
“Despite evidence showing the three mobile network owners reacted strongly to the potential competitive threat of a new TPG network, the court considered that the merger would be pro-competitive, allowing Vodafone to compete more effectively against Telstra and Optus.”
The ACCC noted that small providers offer cheaper alternatives for consumers. Although their plans usually don’t include extras such as access to content, their voice calls, SMS and data packages are similar to those offered by the three networks operators.
Mr Sims also urged consumers to try and find the best deal possible for their circumstances.
“Before changing over, we encourage consumers to compare different providers’ geographic coverage, and consider their individual needs, as not all providers offer the same coverage.”
“There are still ways to find a cheaper mobile plan but, ultimately, dynamic competitive markets deliver best for consumers,” Mr Sims concluded.
About the author
About the author
Spending
Aussies splash record cash for Black Friday and Cyber Monday
More than $8 billion was spent between the two shopping holidays, according to NAB estimates. ...Read more
Spending
Festive shopping expected to be bigger and earlier than ever
Australians are set to spend $60 billion at retailers across the country. ...Read more
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
What Omicron means for property, and are units right for first-time buyers? What is equity crowdfunding? Are industry super funds tapping into member funds to save their skins?
Listen now
Will housing affordability improve in 2022? Will buy now, pay later become the norm? Why are Aussies staying in failing super products?
Listen now
Who really benefits from crypto ETFs? How will the RBA respond to rising inflation? Could a mandate help address unpaid super?
Listen now
How the post-lockdown period will influence property, what the soaring NFT market means, and defining financial wellness
Listen now
Spending
Aussies splash record cash for Black Friday and Cyber Monday
More than $8 billion was spent between the two shopping holidays, according to NAB estimates. ...Read more
Spending
Festive shopping expected to be bigger and earlier than ever
Australians are set to spend $60 billion at retailers across the country. ...Read more
Spending
Aussies’ spending on subscription rises, but will it stick?
Aussies carved out a greater slice of their spending budgets when it came to streaming services during the pandemic. ...Read more
Spending
Qantas announces $2.3bn loss but plans to be flying again by Christmas
Australia’s national carrier has revealed the devastating impacts border closures have had on the company, while noting a possible return date to international operations in its full-year market upd...Read more
Spending
Will your frequent flyer status be impacted by COVID?
In the latest bid to kick-start the travel industry post-lockdowns, Australia’s largest airline has announced that it is rewarding its frequent flyers by extending their status. ...Read more
Spending
‘Technology, not taxes’: Why not both?
The government has joined the rest of the world in looking to offset carbon emissions, albeit through technology, not taxes, despite the possibility that positive taxes and incentives could potentiall...Read more
Spending
Social media spending balloons to $118bn
Australians are spending a whopping $118 billion on discretionary items through social media and apps, fresh figures have revealed. ...Read more
Spending
Why payphones are set to become free
Australians will now be able to make free calls from any Telstra payphone under a new initiative aimed at helping those who are in need, Telstra’s CEO has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
