When faced with the scenario of choosing a mobile phone plan in Australia, the most basic question is whether you need to purchase a new phone. Here are the possible situations:If you already have a phone, you can choose:
- Prepaid Plans: Prepaid plans require you to pay in advance for a certain amount of call, text, and data credits. Once the credits are used up, you can still receive calls but cannot make outgoing calls. You have a certain period of time to recharge your credits, for example, 30 days before the credits expire.
- SIM Only Plans: SIM-only plans are a type of postpaid plan where you get a certain amount of credit and usually need to sign a contract for at least 12 months. Once the included call, text, and data limits are used up, additional usage will incur extra charges at a higher rate.
Are there many options for prepaid plans in Australia?
There are two main types of mobile phone plans in Australia: prepaid plans and postpaid plans.
It’s important to note that SIM-only plans can be either prepaid or postpaid, depending on whether you pay in advance or at the end of the month.
Prepaid mobile phone plans have become increasingly popular in Australia over the past decade. In addition to the three major telecommunications companies, Telstra, Optus, and Vodafone, their subsidiaries and virtual network operators (MVNOs) have also introduced a variety of prepaid plans. This indicates that prepaid plans are also popular in Australia.
What are the unique features of prepaid mobile phone plans?
The reason why many people choose prepaid plans is that they offer several unique features that attract customers:
- Prepayment: The biggest characteristic of prepaid plans is that you pay in advance before using the service. Although it may not seem as appealing as postpaid plans where you use first and pay later, it can help many users avoid unexpectedly high bills at the end of the month when they accidentally exceed the expected usage.
- No contracts: Prepaid plans are not contract-based. You can change plans and switch carriers anytime.
- No credit checks: Even individuals without credit history in Australia can sign up for prepaid plans.
- Wide availability: Major telecommunication companies and numerous Mobile Virtual Network Operators (MVNOs) offer this type of plan, providing many choices.
- Short-term plans: Most prepaid plans are short-term, typically ranging from 28 to 31 days. They offer a high level of flexibility.
- Cost-effective: Prepaid plans are generally considered to be cheaper than any other form of phone plans.
- No overage charges: Prepaid plans do not have overage charges. Once you have used up your allocated talk time, texts, and data, the service will stop. This allows some subscribers to save money.
Over the past decade, prepaid mobile plans have become increasingly popular in Australia. They are not only suitable for permanent residents but also for foreigners, international students, and international tourists who need to quickly activate mobile services.
What do prepaid mobile plans include?
Essentially, prepaid plans include similar components as postpaid plans, typically offering talk time, text messages, and data. The specific quantities depend on the provider.
Talk time and text messages
Whether it’s postpaid or prepaid, most Australian mobile plans include unlimited domestic talk time and text message services. Only a few prepaid plans offer limited quantities of talk time and text messages, such as a plan that includes 500 minutes of talk time and 500 text messages.
There are also some prepaid plans that operate on a pay-as-you-go basis. For example, you can recharge with a credit balance of $20, and after each call or text message, the corresponding amount will be deducted from the balance based on the per-minute or per-message rate. Once the balance reaches zero, you won’t be able to make calls.
Data
Nowadays, almost everyone needs data to connect to the internet. Therefore, a significant portion of mobile plans is allocated to data packages. Some prepaid plans include a certain amount of data. If you use it up, you can automatically “recharge” your data. This can be expensive, for example, many providers charge $10 for an additional 1GB of data.
Some providers allow you to “rollover” unused data from one month to the next. The amount of data that can be rolled over is usually limited to a certain number of gigabytes. There are also plans that do not charge additional fees for exceeding data limits but may restrict the download speed of your available data during the billing period after using a specific amount of data.
The 3 major carriers
Telstra
As the leading telecommunications provider in Australia, Telstra offers excellent network coverage. Whether you are traveling along the desolate Great Ocean Road or in bustling areas like Sydney and Melbourne CBD, Telstra’s signal is almost always available. The coverage map below shows that Telstra’s 4G signal in the Melbourne area is nearly ubiquitous, with download speeds ranging from 2 to 75 Mbps.
In terms of pricing, Telstra is indeed the most expensive among the three carriers. However, if you are willing to pay a bit more each month for the best signal strength and speed, Telstra would be the top choice.
Optus
Optus has made significant investments in network infrastructure in recent years, resulting in reliable coverage. It is rare to experience signal issues during daily life and studies. In terms of pricing, Optus generally offers lower prices compared to Telstra.
Optus also provides various perks such as discounted movie tickets and vouchers. Many people choose Optus for these additional benefits.
Vodafone
Vodafone is a multinational telecommunications company based in the UK and the second-largest mobile communications company in the world. However, Vodafone’s network coverage is not as good as the previous two carriers, especially in suburban and underground areas where signal strength can be weak or non-existent.
Nevertheless, Vodafone offers the most affordable prices among the three carriers. When priced the same as other carriers, it provides the highest amount of data. Additionally, Vodafone frequently runs promotions, such as providing free printers or movie tickets during the back-to-school season. Many people around me still use Vodafone.
Moreover, Vodafone is quite flexible when it comes to international roaming. If you are traveling, you can choose the $5 daily option. If you are on vacation in your home country, you won’t incur any additional roaming charges if you don’t use the service.
Other providers
Many users may notice that Australia has several smaller virtual network operators that rely on the three mentioned carriers to provide services to consumers. These operators offer cheaper prices but often have slower internet speeds and weaker signal coverage.
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