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 can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. ...Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more
Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more
Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more
Wrapping up an eventful 2021
Listen now
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
Spending
Aussies can ‘NAB Now Pay Later’ with the last major bank to embrace BNPL
NAB has become the latest bank to enter the BNPL market. ...Read more
Spending
Aussie households spent $368 a week on transport after petrol price surge
Fuel costs have increased by 40 per cent over the past year, a new report from the Australian Automobile Association has revealed. ...Read more
Spending
Voters say reducing the cost of living should be the government’s top priority
Aussies have ranked high cost of living as the top issue that needs to be addressed by the next government. ...Read more
Spending
Bodies back Labor’s commitment to stronger BNPL regulation
All parties should commit to stronger regulations for the BNPL sector, according to Financial Counselling Australia. ...Read more
Spending
Household spending surges led by retail and recreation
Spending on retail, recreation and hospitality have continued to climb as COVID-19 case numbers and restrictions have eased. ...Read more
Spending
Banks extend financial assistance to flood-affected customers
A range of assistance is available from major banks to those impacted by flooding in NSW and Queensland. ...Read more
Spending
Sydney ranks among top data centre markets in the world
Sydney ranked eighth globally and clinched the third spot in the Asia-Pacific data centre market as the industry continues to expand at a breakneck speed. ...Read more
Spending
The trends driving consumer change in 2022
Global research has provided insight into the top consumer trends for the 2022 calendar year. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
