Aussies could save hundreds of dollars if they make the switch to a smaller telco, according to a new report from Tom's Guide's sister site for financial advice, Mozo.
Mozo's "The Cost of Connectivity" report, released today, has revealed that broadband consumers could save up to AU$495 per year and mobile consumers could save up to AU$142 per year if they are willing to ditch larger telcos and "shop small".
“When it comes to mobile and broadband plans, consumers who shop small can save big, but according to the ACCC, less than 11% of Aussies choose these smaller players" says Mozo personal finance expert, Rachel Wastell.
“Many consumers opt to stick with their current plans for convenience or loyalty, and close to half of Australians choose one provider over all others, but the truth is consumer loyalty can often come at a cost.”
According to the latest ACCC report, almost half of all Aussies have signed up to Telstra for their mobile and broadband plans. Owning massive chunks of the NBN and non-NBN wholesale markets (44% and 38% respectively) and the mobile services market (43%), the telco is synonymous with coverage and availability nationwide. However, with premium plans, and rising cost-of-living pressures, the telco's hefty price tags don't always offer the best value for money.
Mozo's analysis compared 258 NBN and 5G broadband plans from 56 providers, and 374 4G and 5G postpaid and prepaid plans from 49 providers. After taking into account monthly costs, set-up fees and introductory discounts, the experts identified the best value plans and providers in the 2024 Expert Choice Awards.
How to save on your internet bill
According to Mozo's research, 80% of broadband award winners were smaller brands, including Flip, Spintel and Superloop. Other providers scoring highly include TPG, which was the only major retailer to secure a win across all NBN and 5G categories.
For Australia's most popular speed tier — NBN 50 — Mozo's report found that consumers could save up to AU$133 a year if they switched to one of the aforementioned providers. For NBN 100 plans, consumers could save up to AU$164 per year and NBN 250 users could save a modest AU$252. The maximum savings on offer of AU$495 pertain to NBN 1000 or Ultrafast customers, with plans on the tier averaging at AU$147p/m.
Flip took out the top spot for overall Broadband Provider of the Year thanks to its affordability across 4 NBN speed tiers. Flip offers an astonishingly low price of AU$73.90p/m for its NBN 50 plan after introductory discounts end, which is well under the average of AU$80.66 for the tier. The telco also offers savings across its plans from Basic II (25Mbps) all the way up to its Superfast (250Mbps) plan.
If you're keen to see what plans other award-winning NBN providers have to offer, you can check them out in the widget below.
In terms of 5G broadband and NBN alternatives, TPG, iiNet and Spintel took out top gongs. iiNet has been a recent favourite provider of ours, thanks to its affordable and reliable 5G plans. The telco's current introductory offer knocks AU$10 off per month for the first six months across both of its 5G offerings. Typically most 5G plans fall within the AU$58-96p/m range, but with this discount, iiNet's plans both provide great value.
If you're interested in checking out either of iiNet's 5G offerings, you can find them in the widget below.
How to save on your mobile phone bill
The ACCC has previously stated that Aussies use an average of 15.9GB of data each month on postpaid mobile plans, which we can safely assume that the more data you need for your phone, the more you're likely to pay.
Mozo's research shows that for most people, data usage falls between 17GB to 45GB per month, and the average cost of a 5G plan is around AU$36p/m. Mozo's Award winners in this category were Moose Mobile and Lebara Mobile, with Moose Mobile claiming the crown in five 5G categories and earning the title of 5G postpaid Mobile Plan Provider of the Year. Meanwhile, Spintel was recognised as the 4G Postpaid Provider of the Year, securing wins in 4 categories.
Switching to any of these providers could save you up to AU$142 a year, depending on your typical data usage. If you use between 17GB to 45GB, you could score savings of up to AU$90, whereas other users with higher data usage (i.e. anything over 45GB a month), could see those maximum savings of AU$142.
If you're looking to swap your phone to a postpaid plan or would like to see the plans that these providers offer, you can check them out in the widget below.
