Telco price hikes: How to save $456 a year from Optus, Telstra and Vodafone

Double-dipping price hikes from the big telcos take full effect on Monday as analysis shows consumers can save $456 a year and still use the major companies’ networks.

Following hikes by Vodafone in April and Telstra in early May, on Monday Optus postpaid plans increased by $5 a month.

The cheapest plan is now $60 a month, with the data offering increasing by 10GB to 80GB. Accounting for both of Optus’ hikes in the past 12 months, customers on the cheapest plans will now pay a 15.4 per cent increase compared with the inflation rate of 4.6 per cent.

Financial comparison site Canstar points out the telcos typically raise their prices once every 12 months, but Telstra and Optus have slugged customers with two hikes in less than one year.

“This latest increase from Optus completes a round of price hikes across the big three providers, and it’s the second rise in less than a year for some customers,” Canstar utilities editor Tara Donnelly said.

“The network coverage myth – that cheaper providers come at the cost of network coverage – unfortunately still persists, leaving many Australians paying far more than they need to for their mobile plan.”

Canstar analysis shows people can get postpaid plans with at least 50GB per month and save $456 a year by leaving Optus, Telstra or Vodafone for one of the budget providers that use the same network infrastructure.

“At a time when budgets are already stretched, it’s more important than ever for households to review their plan and make sure they’re not overpaying,” Ms Donnelly said.

“Smaller providers use the same underlying infrastructure as the major telcos with the same network coverage, or in the case of Telstra’s wholesale network, coverage is almost identical.” For customers willing to compare their options, the savings can be substantial.

“Canstar research shows many Australians are paying for far more data than they actually use,” Ms Donnelly said.

“With data being the main driver of mobile plan pricing, simply choosing a lower‑data plan could deliver meaningful monthly savings,” she said.

Monday’s Optus hike brings an additional $5-per-month charge but also more data each month.

Research from the consumer watchdog finds Australians use an average of 14.5GB of mobile data each month, and Canstar research shows 57 per cent of people pay for more than 20GB.

Each year Optus spends about $1.4bn maintaining and upgrading its mobile network, including the installation of 679 new 5G sites over just the past year.

Optus is owned by Singaporean telco company Singtel.