Australians stay loyal to their mobile providers despite increasing prices, Finder report finds

Australians are remaining loyal to their mobile providers even if it costs hundreds of dollars, a Finder research reveals.

Finder polled 1,058 respondents which revealed that two in five (41%) people have been with their mobile provider for six years or more despite 55% experiencing at least one dropout or lack of service in the past 12 months.

The research found almost a third (28%) would remain loyal to their provider even if their bill were to increase.

Consumers would still stay even if the bill increased by $10 a month – $120 a year – before switching.

More than one in 10 (12%) would wait until their bill increased by $20 or more a month – $240 a year – before considering a different provider.

Finder utilities expert Mariam Gabaji said Aussies are devoted when it comes to their mobile providers.

“It’s easy to remain attached to the same provider you’ve been with from the get-go but you won’t be getting the best bang for your buck,” Gabaji said.

“Not comparing your options can end up costing you more in the long run.”

Mobile phone users pay $56 a month from their phone bill, up from $49 in February, according to Finder’s Consumer Sentiment Tracker.

Users can get as much as 120GB of data for $25 a month or if they are less of a data user, they can get 10GB of data for $10.

Gabaji recommended assessing one’s plan whether users are getting the best value for money.

“If you’re using significantly less data than your allowance per month, then it might be time to downgrade to a cheaper plan,” Gabaji said.

“Understanding your mobile habits will help you determine which plan is best suited to your needs. Don’t overspend on a plan you’re not taking full advantage of – defaulting on a bill can negatively affect your credit score. And remember, when you switch you can keep your phone number.”

Gabaji advised Australians to compare their plan against others in the market and check to see what inclusions they could be getting for a better price.

“It’s also a good idea to call your provider and see if they’re willing to upgrade your plan to keep you as a customer.”

“If not, there are loads of providers who will be happy to make you a better offer,” Gabaji said.

Baby boomers are more likely than any other generation to stick with their provider despite the price hike with 37% admitting they will not switch even if their bill increased compared to 22% of millennials and 24% of Gen Z.

How phone plans can affect consumers’ credit score:
1. Applying for a postpaid plan. When consumers apply for a postpaid mobile plan, the provider may perform a credit check to assess their suitability for the plan. This check may appear on their credit report, but it shouldn’t affect their credit score unless they’ve applied for multiple plans in a short time.
2. Making a late payment. If they have a late phone payment of at least $150 that is overdue by more than 60 days, it will be considered a default. At this point, the phone provider will report this to the credit reporting agencies, which means your credit score may fall. The default will also remain on your credit file for five years.
3. Defaulting one’s bill. As well as hurting your credit score, defaulting on your phone bill may also make it harder to get another mobile plan in the future. The easiest way to avoid defaulting is simply paying the bill on time, ideally using direct debit. As mentioned above, if users miss a payment, make sure to pay it off as soon as possible and contact the provider if one is unable to pay.

This first appeared in the subscription newsletter CommsWire on 20 September 2022.

GET READY FOR XCONF AUSTRALIA 2022

Thoughtworks presents XConf Australia, back in person in three cities, bringing together people who care deeply about software and its impact on the world.

In its fifth year, XConf is our annual technology event created by technologists for technologists.

Participate in a robust agenda of talks as local thought leaders and Thoughtworks technologists share first-hand experiences and exchange new ways to empower teams, deliver quality software and drive innovation for responsible tech.

Explore how at Thoughtworks, we are making tech better, together.

Tickets are now available and all proceeds will be donated to Indigitek, a not-for-profit organization that aims to create technology employment pathways for First Nations Peoples.

Click the button below to register and get your ticket for the Melbourne, Sydney or Brisbane event

GET YOUR TICKETS!