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Mobile Plans: Monthly plan or PAYG, What’s the best for you?
Choosing the right mobile phone plan can be tricky, as there’s a lot to consider. The best option for you depends on your budget, how you use your phone, and whether you want a new device included.
What’s the best fit for you?
Generally, you have two main options:
- Contract plans: These plans typically last for a set period, like 12 or 24 months. You can often get a new phone included in the monthly cost. This can be a good choice if you want to spread out the cost of a new, expensive phone and prefer a predictable monthly bill.
- Prepaid or pay-as-you-go plans: With these plans, you pay for your service upfront, usually for a month or a set amount of data, calls, and texts. They don’t include a new phone, so you’ll need to bring your own device. This is a great option if you already have a phone you like and want more flexibility without a long-term commitment.
The best plan is the one that fits your needs. If you’re looking for a new phone and don’t mind a long-term commitment, a contract plan might be a good fit. If you prefer flexibility and want to save money by using your current phone, a prepaid plan is likely the better choice.
When you’re comparing mobile phone plans, it’s a good idea to think about how you actually use your phone.
Your Data Usage
Your data usage is a big factor. Do you currently have a plan with 20GB of data but only use 5GB each month? If you’re mostly connected to Wi-Fi at home or work, you might be paying for a lot of data you don’t need. Look for a plan with less data to save money.
Your Current Phone
Are you happy with your current phone? If it does everything you need it to, you might not want to pay for a new device. Many plans offer a lower monthly cost if you bring your own phone. On the other hand, if you’re looking for the latest features, a plan that includes a new phone might be the right choice for you.
Contract or sim only – let’s break it down
Contract phones:
A mobile phone contract is an agreement between you and a mobile service provider for a set period, typically 12, 24, or 36 months. In exchange for a fixed monthly fee, the contract provides you with a bundle of services, including a certain amount of data, calls, and texts.
A major feature of many contracts is that they include a new phone, with the cost of the device being spread out and included in your monthly bill. This can make a new, expensive phone more affordable upfront.
The main advantage of a contract is the convenience of having a predictable monthly bill and often, the ability to get a new phone without a large upfront payment. However, the downside is that you are locked into the contract for the full term, and leaving early can result in hefty cancellation fees.
Sim only Plans or BYOD:
A SIM-only mobile phone plan, also known as a “Bring Your Own Device” (BYOD) plan, provides you with a SIM card or eSIM that includes an allowance of data, calls, and texts. Unlike a traditional contract, it does not include a new phone.
This type of plan is ideal if you already own a phone you’re happy with or if you want to buy a new phone outright. Because you’re not paying off a device as part of your monthly bill, SIM-only plans are often much cheaper than contracts. They also offer greater flexibility, with many providers offering month-to-month plans that allow you to change or cancel your service without a long-term commitment or expensive cancellation fees.
Prepaid or postpaid?
This article from Canstarblue sums up the difference well in our opinion:
The mobile service you should choose depends on how you use your phone, or just your personal preference for one type over the other. If you’re a fairly light user who doesn’t require much data, a cheap prepaid plan with a long expiry period could be the way to go. However, there are also some very cheap postpaid plans with small data inclusions, so if you’re a light user, there are choices.
Ultimately it comes down to your preference. Do you want to pay for your phone service upfront, and run the risk of having no credit when you run out? Or would you prefer to have an endless supply of calls, messages and data, but run the risk of being charged extra? Maybe your decision will be completely swayed by whichever type of plan offers the best value for money for your needs.
Whichever way you decide to go, just be sure to compare a wide range of offers to find the best plan for your specific needs and preferences.
Go direct to your mobile phone provider v’s comparison tools
Don’t go direct to your network provider
When searching for a new mobile phone plan, many people start by going directly to a few of the major network providers like Telstra, Optus, or Vodafone. However, the real benefits of finding the best deal come from using comparison websites like Canstarblue, Finder, or Econnex. Here’s why this approach is a smarter choice:
- See the Full Picture: A direct provider will only show you their own plans and promotions. Comparison websites, on the other hand, aggregate plans from a huge range of providers—including smaller, lesser-known companies that often offer fantastic deals. This gives you a comprehensive view of the entire market, ensuring you don’t miss out on a plan that might be a better fit for you.
- Find the Best Value, Not Just the Biggest Brand: The major networks aren’t always the cheapest. Many smaller providers, known as Mobile Virtual Network Operators (MVNOs), use the same networks as the big players (e.g., Aldi Mobile and Kogan Mobile use the Telstra or Vodafone network). Comparison tools allow you to find these hidden gems, which often offer more data or other perks for a significantly lower price.
- Tailor the Search to Your Needs: Comparison sites let you filter and sort plans based on exactly what you need. You can specify your desired data allowance, contract length (e.g., month-to-month or 12-month), and even features like international calls or 5G access. This helps you quickly narrow down a long list of options to a handful of plans that are perfect for your specific usage habits.
- Spot Special Deals and Promotions: Comparison websites are constantly updated with the latest special offers and limited-time promotions. This means you can easily find sign-up bonuses, discounted rates for the first few months, or extra data allowances that you might not have known about otherwise.
In short, using comparison tools empowers you to make an informed decision by moving beyond a few well-known brands and seeing all the options available. It’s the most efficient way to save money and find a plan that truly matches your lifestyle.
Using your Mobile Phone Abroad
International roaming can be a costly add-on to a mobile phone contract, and it’s worth considering whether you need it. While some plans offer international usage, it can come with a high price tag, especially if you’re not a frequent traveller.
If you don’t travel often, you might find it more affordable to keep a local plan for your everyday use and purchase a dedicated roaming or travel SIM card / eSIM when you go overseas. These can often be much cheaper than paying for international roaming through your regular provider and offer better control over your spending while you’re away from home. Canstarblue have a fantastic comparison tool to make it easy to choose.
Cut the Cost of Using your Phone While Aboard
Do you really need to be contacted 24/7 while you’re on holiday? A big part of traveling is disconnecting and relaxing. Most hotels offer free Wi-Fi, which can be a much cheaper way to stay connected. You can take all the photos you want during the day and just wait to upload them until you’re back at your hotel. This way, you can save money and focus on making memories instead of worrying about your data plan.