Are you paying too much for mobile data?

Looking for a new mobile phone plan can be time consuming and it can be difficult to know what you’ll need down the track.

Whether you chose a pre-paid or post-paid option, it’s important to consider the amount of data you actually use.

The Australian Competition and Consumer Commission’s (ACCC) Communications Market Report showed that in 2020-21 an average mobile consumer on a post-paid contract used only 11.8gb of data per month, compared with a median data allowance of 35gb per month, meaning consumers were paying for data they didn’t use.

The report revealed several mobile network operator increased prices across a range of their products in 2021.

Pre-paid data

The price of entry-level pre-paid mobile services rose by 16% on average as a result of increases to the cost of basic plans and reductions in the expiry periods.

ACCC Commissioner Anna Brakey said these changes meant consumers on pre-paid mobile services were paying more.

“Reducing the expiry periods on prepaid plans from 35 and 42 days to 28 days is a price increase by stealth,” Ms Brakley said.

“Over a year, it means consumers are recharging more often, and therefore paying up to 25% more for their mobile phone service.”

Post-paid plans

The report revealed several mobile operators moved towards a “more-for-more” model for post-paid plans in which they offer 50-100% more data across their plans at a higher cost.

With the smallest post-paid data plan starting at 40gb per month at major telcos, Ms Brakey said many consumers were paying for data they didn’t want or need.

“While consumers are getting more data allowance than before, it is unclear if they want or need it, as an average person isn’t currently going anywhere near using the average mobile data allowance,” she said.

“We encourage consumers to weigh up their internet needs and choose their… plan based on what they think represents better value.”

How to save on mobile data costs

• Check how much data you actually use and how it compares with your data allowance.
• Shop around for the best deal.
• Carefully read the Critical Information Summary of each product, including the costs involved if you exceed the data allowance.
• Consider whether data banking, data sharing or family plans are beneficial to you.

Reduce your mobile data usage

• Set up data alerts and limits.
• Use Wi-Fi where possible.
• Limit background data usage.
• Limit how often apps sync and when they update.
• Use apps offline.
• Turn off autoplay on social media videos.

The information in this article has been prepared for general information purposes only and is not intended as legal advice or specific advice to any particular person. Any advice contained in the document is general advice, not intended as legal advice or professional advice and does not take into account any person’s particular circumstances. Before acting on anything based on this advice you should consider its appropriateness to you, having regard to your objectives and needs.