Best SIM-only phone plan provider: Amaysim

Amaysim scored highest for overall satisfaction and in several other categories, followed closely by ALDImobile. 

Of the mobile phone plan providers we had enough data to report on, the major three – Telstra, Vodafone and Optus – were the only ones to score below average for SIM-only plans, taking the last three places for overall satisfaction, as well as in some other categories.

Best SIM + handset phone plan provider: Telstra

Telstra scored highest for overall satisfaction, but not by much. While no provider in this category scored significantly better or worse than the next mobile service provider above or below them for overall satisfaction, the lowest scorer – Optus (69%) – was significantly below Vodafone’s 74%.

The number of mobile service providers with SIM + handset plans that we could report on is limited, both because of our responses but also because there are fewer players in this section of the market.

How is the best phone provider calculated?

Overall satisfaction score

Our mobile satisfaction survey rates providers based on their own customers’ feedback on how they’re performing. Our 2023 survey covered a range of questions such as call clarity, internet speed, customer service and how clear the bill is to understand. We also asked people how satisfied they were with their provider overall.

What matters to you

When it comes to selecting a SIM and phone provider, the most important factors respondents listed were: value for money (61%), network reliability (46%), network coverage (45%), and internet connectivity (23%).

SIM-only plans dominated – 69% of respondents had one, which is identical to our 2021/22 survey results. SIM and mobile handset plans made up 42% of responses.

No-contract plans have stabilised in popularity. In our 2023 survey, 69% of people were off-contract, using prepaid, post-paid or pay-as-you-go plans. The number of people locked into a contract has dropped from 57% in 2019 to 30%.

Scoring the satisfaction rating

Satisfaction scores are calculated out of 100 by asking respondents to rate their service provider on various attributes and overall satisfaction on a seven-point scale ranging from terrible to excellent. The results are tested for statistical significance to verify scores that are statistically higher or lower than the average.

Why we've partnered with WhistleOut

We've partnered with search engine WhistleOut to help you find and buy the right plan for you.  While we make money if you buy through WhistleOut, this doesn't influence our rankings. 100% of the money we make goes straight back into our nonprofit mission.

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This article mentions domestic violence. If you or anyone you know needs support, contact 1800Respect on 1800 737 732 or visit .Ìý

The Australian Communications and Media Authority (ACMA) and the federal government have put the telecommunications industry on notice to better protect customers experiencing financial hardship.Ìý

In July ACMA threw down the gauntlet, saying the industry must lift its standards for supporting vulnerable customers or face regulatory intervention.Ìý

“We expect the industry to demonstrate significant progress towards addressing these issues in the next six months. If the industry is unwilling to do so, we believe there is compelling evidence to support moving these protections into direct regulation,” ACMA chair Nerida O’Loughlin says.Ìý

“The ball is now squarely in industry’s court to make the necessary improvements to better protect their customers.”

Stronger protections urgently needed

Consumer protections for the industry fall under the Telecommunications Consumer Protections (TCP) Code, which is currently being reviewed by the industry peak body, the Communications Alliance. The review is expected to be completed by the end of 2024, but ACMA says stronger consumer protections can’t wait.Ìý 

While Communications Minister Michelle Rowland has directed ACMA to make a “directly enforceable instrument” for financial hardship protections, the regulatory body says the issues that need to be addressed go beyond financial hardship and include selling practices, disconnection processes and the treatment of customers experiencing domestic and family violence.Ìý

The continuing use of telecommunication tools by abusers in domestic violence situations is reason enough for an overhaul of the industry’s approach, as the case study below illustrates.

Case study: Poor response to family violence situation

Sahara* is an Aboriginal woman living in regional Victoria whose abusive ex-partner coerced her into buying an expensive prepaid phone plan with Optus. He used the phone himself and she got no benefit from the purchase.Ìý

Later, when she fell behind on payments, Optus sold her debt of over $2000 to a debt collector who harassed her for the money despite her telling Optus she was in a family violence situation.Ìý

“It’s a hell of a lot of money to pay off as a single parent and there are so many expectations as a single parent who is struggling, coming out of drug addiction as well,” she says.Ìý

In September last year, she suffered a broken arm at the hands of her former partner. Sahara says despite telling Optus of the abuse, they still didn’t offer to recall the debt, but in the end it was waived by the debt collector with the help of an Aboriginal community legal centre lawyer.Ìý

An Optus spokesperson told ÌÇÐÄVlog the company is committed to assisting any customers affected by domestic or family violence.Ìý

“Customers who indicate they are experiencing domestic or family violence are supported by our financial hardship team who are specially trained in handling these matters,” they said.Ìý

“Our team starts by ensuring our customer can safely speak before exploring bespoke solutions for their situation as we know every person and every situation is different.”

Strong consumer protections needed for essential services like telcos

Consumer advocates say cases like Sahara’s highlight how far the telco sector has to go to improve its practices around family and domestic violence.Ìý

While ACMA’s involvement is welcomed, an improved consumer protection framework may not go far enough.Ìý

“There’s no question that telecommunications and our phones are essential in every aspect of our lives,” says David Hofierka, senior policy officer at Consumer Action Law Centre.Ìý

“In every other essential service like energy, water and banking, all key consumer protections are already enshrined in direct regulation and we’ve been calling for these protections for years.Ìý

“The TCP code, the current framework, is not delivering for consumers. We’ve seen no demonstrable indication that telcos have reviewed or adjusted their ways to help people get or stay connected,” he adds.

Hofierka says if the improved framework doesn’t include protections for domestic and family violence victims and overselling protections, the government will need to step in and do more.Ìý 

Significant penalties needed to deter bad behaviour

Gareth Downing, deputy CEO of the Australian Communications Consumer Action Network (ACCAN) says that any new regulatory scheme will need stronger enforcement and penalties.

“I think what’s very, very important from our perspective is getting the content right for consumer protections,” he says.

“But the second step, and perhaps equally important, is making sure that the enforcement and penalty arrangements in place provide a real incentive on the part of industry to comply and to deliver those protections for consumers.” 

Hofierka agrees that the regulator needs to be given greater powers.

“Direct regulation needs to have significant financial penalties to be an effective deterrent to bad behaviour,” he says.Ìý

“It’s been a long time coming and until it happens, we’re going to keep continuing to see serious consumer harm,” he adds.Ìý

_{*Not her real nameÂ} 

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When Nicola Clement’s father’s health was declining mid-last year, her mother called Telstra to transfer his account to her name. Telstra saw it as a sales opportunity.

Her mum, who is 68 years old, walked away from the call with what she thought were two free tablet devices.

It was only when her daughter checked on the bills after her dad passed away later that year that she discovered her parents had been signed up to a 36-month repayment plan for the devices. They would have to pay almost $300 per device to cancel.

“I feel that they have been taken advantage of in the worst possible way,” Nicola tells ÌÇÐÄVlog.

“Dad’s health was deteriorating badly and he was on quite strong medication. Dad was always the one who was more technologically savvy and he thought he was on to a great deal and mum went along with it,” she says.

Nicola says her mum has been left widowed and paying for devices she doesn’t want or need. One is still sitting in its box unopened.

Telstra’s trusted place in the market

Telstra is Australia’s largest telecommunications company, and for some senior citizens it holds a special place in the market that pre-dates privatisation and the introduction of competition in 1997.

A former Telstra staff member says some senior customers even still refer to the company as “Telecom” despite the name being changed in 1995.

Teresa Corbin, CEO of the Australian Communications Consumer Action Network, says there’s a lot of brand loyalty to the company.

“Older customers do tend to be loyal to Telstra … and people are reluctant to shop around,” she says.

But we spoke to two people who say they were taken advantage of because of their age and they are frustrated with the company after being left to pay higher bills for products and services they didn’t ask for.

Two former staff members of the company also describe a sales-focused culture with little regard for whether the products being sold are wanted or needed.

‘They played me’

Nola Lehninger is 91 and only uses her landline. She says she sees no need for a mobile and bemoans seeing “young people” on the street with their headphones in, not watching where they’re going.

But last year, on a sales call from Telstra, she was signed up to an internet plan which cost her an additional $15 a month, despite not using the internet at all or even owning a computer.

“They never mentioned that I would be paying more … they certainly played me up didn’t they?” she tells ÌÇÐÄVlog.

“I saw my bill and didn’t know what was happening. They must have thought I was so old I didn’t know what I was talking about,” she says.

After a carer of hers made multiple complaints to Telstra, the company agreed to lower her bill again and refund the money she had paid over 12 months. But the experience has left a bitter taste.

“Maybe they take advantage of someone who is very old like me,” Nola says.

Sales tactics and commission bonuses

David*, who worked for Telstra for over 15 years, until early 2021, describes the sales culture as highly competitive, with bonuses such as overseas trips for those with the highest annual sales. He worked in sales up until 2010.

“It all added towards your tally. They used to have a board on the side for each team. You had your products and your add ons, and they would track your tally each week and month,” he says.

“I was pretty competitive, I always wanted to be top three so I kept track of that. There was always competition between the guys and teams,” he adds.

He says the salespeople received financial bonuses based on their performance, with the biggest commission going to those who sold higher cost products.

“At the end of the day, I guess, as a business, they didn’t care how you got the sales as long as you got the sales,” David says.

Another former staff member, James, who worked at Telstra around five years ago, says he was told off by management at the store he worked at in Melbourne for not upselling older customers a Telstra phone insurance plan that he felt they didn’t need.

“It’s all sales focused, it’s not even about matching to needs or anything, it’s all profit motive. I know it’s a business, but it has a duty to its customers not to be doing some of these aggressive sales tactics,” he says.

ACCC action

It’s not the first time Telstra has been accused of overselling to vulnerable customers.

In November last year, the Australian Competition and Consumer Commission (ACCC) filed proceedings in the Federal Court, aiming to fine Telstra $50 million for “unconscionable conduct” for selling mobile phone plans to more than 100 Indigenous consumers who did not understand and could not afford the plans.

The fine was for sales conduct between 2016 and 2018, well before the cases involving Nicola and Nola.

Telstra accepted the penalty and in May the Federal Court upheld the fine as adequate.

The fine is the second-highest penalty ever imposed under Australian consumer law.

According to the ACCC investigation, Telstra board and senior executives were unaware of the improper sales tactics, but the company had no effective systems in place to detect or prevent the conduct.

Harm done to customers

Financial Counselling Australia (FCA) recently conducted a survey of financial counsellors, seeking feedback on how their clients have been affected by issues with telcos.Ìý

Mis-selling was a major theme of the report with at least 80% of financial counsellors reporting that mis-selling or overselling had contributed to their client’s financial difficulties.

A third of counsellors estimate that these practices have impacted more than half of their clients (this was the highest answer on the survey).

FCA CEO Fiona Guthrie says the report highlights how widespread the problem is among customers of all ages.

“It says it’s a really huge problem and we shouldn’t be surprised. The whole industry works on a commission-based sales model and as soon as you’ve got commission-based sales you incentivise poor practices which take advantage of people’s vulnerability,” she says.

Guthrie calls on Telstra and the industry more broadly to do away with the commission-based structure in the same way the banking industry has been forced to. “This model is too fraught with danger,” she says.

The Telecommunications Industry Ombudsman and the ACCC both tell ÌÇÐÄVlog they don’t keep age-specific data on the complaints they receive.

Corbin says the power is in the hands of the salesperson when it comes to older customers.

“The person selling the device knows all the information and has a lot of power in that dynamic. It’s really up to them to make an assessment of their needs and advise them of the best product,” she says.

‘Telstra has stopped caring’

68-year-old Leonie Barke says her local Telstra manager upsold her to an upgraded mobile package, which now costs her $175 a month. She was happy with her previous plan of $100 a month.

“I’m furious, it’s too much for me, it’s very expensive. I’m a pensioner and I don’t get any other income in,” she says.

She has since been told that she is on a 24-month plan and can’t get out of it, something she says she wasn’t told at the time of sale.

“I think he conned me into it. He was on a commission from it, and I think he saw me as a bit of a softy, which I’m not,” she says.

David says during his time at Telstra the company has gone through a lot of changes, with the downsizing and offshoring of many elements of its operations, including sales.

His roles included working in the complaints department, where he saw problems. Sometimes when a customer complained, the offshore sales team wouldn’t file a phone record of the sales call to analyse the interaction, as they were meant to.

In David’s view, Telstra isn’t meeting the needs of its elderly customers or properly responding to complaints about mis-selling when they arise.

“As far as the elderly are concerned, I think Telstra has stopped caring. It’s a technology company and technology is moving forward and I don’t think they have put things in place to make sure that part of their customer base is being kept in touch or being provided the assistance that they need,” he says.

Telstra responds

Despite the views of some of its former employees and current customers, a Telstra spokesperson tells ÌÇÐÄVlog the company takes the issue of overselling seriously and is proud of the work they’ve done to support seniors.Ìý

“We have no tolerance for overselling or mis-selling, our model is strongly focused on the needs of the customer,” the spokesperson says.Ìý

“We have a balanced scorecard approach that takes into account customer outcomes, compliance, and sales results as part of the remuneration model for staff,” they say.Ìý

Telstra wouldn’t provide a breakdown of exactly what percentage of their scorecard approach sales results made up, but says they have made “significant changes in recent years” and that “customer experience results” contributed up to 40% of the payment outcomes for staff now.Ìý

In response to the ACCC action, Telstra says they’d made significant changes, including their announcement in February that all franchise stores would end and be brought directly under Telstra.

Telstra previously had 270 franchise-owned stores around the country. The stores that were found to be overselling to Indigenous consumers by the ACCC were franchise stores and Telstra says bringing an end to the franchise arrangement will improve customer experiences.Ìý 

“We take responsible selling extremely seriously and we don’t shy away from the fact that we have made some mistakes previously,” the spokesperson says.Ìý

*Names changed

Do you know more about this story? Contact ÌÇÐÄVlog investigative journalist Jarni at jblakkarly@choice.com.auÌýÌý

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On this page:

• Is it cheaper to buy outright or on a plan?
• What are the best Apple plans
• What are the best Samsung plans?
• What are the best BYOD (SIM-only) plans?

• Buying outright means you pay the full retail price to own the phone and are free to select your preferred carrier. While flexible, selecting a carrier takes extra research, but can save you money in the long run.
• Buying on a plan makes it easy to put that new phone in your pocket with no money down, because it spreads the phone’s cost over 24 or even 36 months. The downside of this is that you’re stuck with that carrier, and their terms. Also, even if you aren’t locked into a contract, you still need to pay off the rest of the price of the phone if you want out of the plan before all the handset instalments are paid.

In this article, we compare the cost of the big two brands – Apple and Samsung.

Is it cheaper to buy outright or on a plan?

The amount you spend depends on brand popularity:

• If you want the latest premium phone from one of the major brands (Apple and Samsung), then a plan will normally be cheaper or at least no worse than buying outright and adding a SIM-only plan. These brands are so popular, they don’t tend to shift from the RRP for the first year of availability.
• Mid-priced and previous generation smartphones from Apple and Samsung may be cheaper if you buy the phone outright, then pair it with a bring your own (BYO) SIM. This process also works well with companies such as LG, Oppo, Huawei and Motorola.

What are the best Apple plans

Apple iPhone 11 plans (Previous generation mobile)

Cheapest and best value

Although the Apple iPhone 11 is a premium mobile, it has now been replaced by the iPhone 12 range which means better deals on what is still a very good smartphone.

The cheapest iPhone 11 plan over 24 months and also very good value is a Vodafone mid-range ($40 lite) plan that will cost you about $1500 over 24 months. The plan includes unlimited voice and text as well as a promotion where you get 50GB of internet data. One thing to note is that the iPhone 11 is 4G only, which means you won’t get 5G performance regardless of the network carrier you select. The good news is that you can select virtually any network carrier as you’ll get 4G across the network.

Apple iPhone 12 Pro Max (256GB) plans (Latest premium mobile)

Cheapest overall

The most affordable plans over 24 months for Apple’s top of the line smartphone includes a Vodafone plan at around $2200 over 24 months. The plan includes unlimited voice and text as well as a promotion where you get 50GB of internet data. However, the iPhone 12 Pro is a 5G mobile, and until Vodafone improves its 5G coverage, there may be fewer areas for you to take advantage of the higher speeds.

Best 5G plan

The Telstra $65 Small mobile plan costs more than $3500 over the 24-month period, which is significantly more than the other plans going around on the other networks. 

Telstra is most likely to deliver the most areas with 5G access, so if you really need the extra speed, this is the one to consider until the other networks catch up. Or you can buy the iPhone 12 Pro (256GB) outright for about $1900 and get a SIM-only plan. Telstra’s cheapest plan ($55) doesn’t include 5G support. The cheapest plan with 5G is about $65. 

What are the best Samsung plans?

Samsung Galaxy A51 (128GB) plans

Cheapest

The most affordable plan for the mid-priced Samsung Galaxy A51 looks like a great deal from Woolworths Mobile. This plan has a reasonable data allowance of 18GB. The cost is just over $1000 over 24 months but the plan on offer is over 36 months with handset repayments of $17 per month. You aren’t locked into a contract but if you want to leave after 24 months rather than 36 months, you’ll have to pay out $204 ($17 x 12) to own the handset outright. An interesting bonus is a 10% discount on your grocery shop at Woolies once a month.

Samsung Galaxy Note S20 Ultra (256GB) Plans (Latest premium mobile)

Cheapest (not recommended if you want 5G)

The most affordable plan over 24 months is from Woolworths Mobile. But they claim to only use part of the Telstra 4G and 3G network which seems pretty useless if you want to take advantage of all the 5G potential this premium smartphone has to offer.

Best 5G value

While there are some cheap plans from Vodafone and Optus, the Telstra mid-priced plan at $65 on top of the handset repayments of $84 offers a lot. You get 80GB data and no charge for going over that limit, although the data speed will be reduced till the next month. There are other plans available, but be sure to look at the fine print for any limits on data or whether the 5G network is supported.

What are the best BYOD (SIM-only) plans?

If you already own a phone you’d like to keep, or you’re eyeballing one that isn’t available on a plan, you can shop around for a SIM-only plan (often called bring your own device or BYOD). These can drive the price down over 12 to 24 months.

• SIM-only plans typically offer the same data, talk and text as phone contracts for far less.
• They generally come in two flavours: monthly “no lock-in” payments, and 12 month contracts. The latter is typically the cheapest option.
• You’re free to compare prices, data limits and so on across different carriers.
• Carriers regularly have SIM sales online. These deals often stay intact for as long as you stay with the provider, even after the contract has ended.
• If you find a plan you like, you can use it with other unlocked phones in the future.

We’ve sorted SIM-only plans to show the total cost for a 24 month period, with the cheapest plan shown first. The best plan is available for under $500.

Should I lease a phone?

When you lease, you can simply give the phone back when your contract is over and continue with a new model and you may also be able to claim the cost in your tax.

If you become attached to the phone and want to keep it, most service providers and retailers will give you the option to buy the mobile when your contract is over. All you need to do is pay the difference between a lease contract, and an own contract.

How can I save money on a new phone?

If you want to buy on a plan, sales are your friend:

• Telcos can offer surprisingly good deals, if you’re prepared to lock in for 24 months.
• This can actually result in a cheaper outcome over two years, compared to an outright purchase with a BYOD plan. So keep an eye out.
• They can also entice you with bonus features such as extra data, unmetered Netflix, damage insurance and so on.
• You can even get discounts for bundling other services such as internet or home phone.
• Shop around and compare sales across different service providers.

So while you’ll still end up paying a lot, sales can increase the overall value of a plan package.

Over to you

We invite you to help others who are weighing up their options. Select the ÌÇÐÄVlog Community button below to share your experiences:

• What have you chosen?
• Have you found a good deal?
• How did you make the choice?
• What are you looking for with your next phone or plan?

Why we've partnered with WhistleOut

We've partnered with search engine WhistleOut to help you find and buy the right plan for you.  While we make money if you buy through WhistleOut, this doesn't influence our rankings. 100% of the money we make goes straight back into our nonprofit mission.

The post Is it cheaper to buy a smartphone outright? appeared first on ÌÇÐÄVlog.