How to spot a good phone plan: 5 things to look for in a new mobile deal

Finding a new mobile phone plan could be a game changer for your budget, or perhaps it could be a new way to get the most from your phone on the go with more data or better service. But how do you spot a great phone plan?

There's a lot to consider when it comes to comparing mobile phone plans, let alone choosing one that is right for your personal circumstances.

From the amount of data you need to the mobile coverage at your home – there's a lot to consider, and for some people, it's about ranking the many variables by priority because it's often hard to find a plan or telco that ticks all the boxes.

I think there are five key things to look for when trying to find a new plan, and remember, it's very easy to switch telcos, you get to keep your existing phone number so do not be afraid to switch.

1. Data inclusions

Let's face it: most mobile plans these days have unlimited calls and unlimited text messaging so the amount of data you get every month is the key driver of any single mobile plan's suitability to you.

Critically, there's no point going into the search for a new mobile plan until you know what you use now. Find your most recent bills or check the app for your current carrier and find out how much data you used in the last three months and average that out. Sometimes, we use more than other months, which is why we think it's important to compare multiple months and get an average usage.

Once you know that you have a far better way of filtering out the plans you don't need. If your average usage has been 16-19GB per month, then you don't need to consider plans that offer 40GB per month. That's like paying for twice as much petrol as you need every month in your car, but in the case of mobile data, in most cases, it gets thrown away at the turnover of the month for you.

Mobile plans with data banking:

There are, of course, some data "rollover" or "banking" plans. The idea is that you save the data you don't use and it gets added to your allowance for the following month.

A word of warning though, if you're using 18GB on average, and are on a 40GB plan, that extra 22GB the next month won't mean much when you rarely if ever come close to using that much data – it's just a way of making you feel like it's OK to pay for more data than you need.

Bottom line, find your usage and pick a plan to suit.

2. Prepaid vs contract

A contract plan is one that normally includes a mobile phone. You're committing to a telco for 36 months to help you pay off the phone you want so much. Of course, my recommendation is always to try and own a phone outright because it gives you far more choice over those three years to switch telcos, and save money.

However, it should be clear that in almost all cases, you are contracted to pay off the phone separately to the deal to stay with the telco. Meaning you can switch plans on that same telco at any time. So if you feel you're paying for too much data, look for a plan with less with that same telco.

Prepaid is often also called BYOD, bring your own device. This is a SIM-only plan, which means you own your phone and just put a SIM card in to get access to a network.

The benefit of prepaid is the lack of commitment, allowing you to switch and try any telco whenever you want.

Popular pre-paid mobile phone plans:

Once you find a great telco there are also a bunch of telcos offering long-term pre-paid options. These are normally 6– or 12-month deals, and they are without a doubt the best way to get the most value from your telco.

3. Coverage in your key areas

There are countless numbers of telcos, but there are only three networks. Telstra, Optus and Vodafone.

I've been talking about and writing about technology, mobiles and telcos for almost 20 years and I know exactly what you're thinking about the telcos. Let me show you.

You think Telstra has the biggest, fastest and most reliable network. They don't have dropouts and if you travel within Australia they are the only option.

Optus you're not sure about but know they have good value plans and seem to offer excellent 5G speeds.

While when it comes to Vodafone you're thinking they have coverage issues and dropouts – despite the fact that their network issues were over 13 years ago, you still think that, and you've never tried them to see.

The truth is somewhere in the middle. No question Telstra has the widest network coverage but do you really know what that means?

Telstra claims 99.6 per cent coverage of the Australian population, Optus claims 98.5 per cent and Vodafone currently 96 per cent (growing to 98.4 per cent in 2025 with their co-use of the Optus regional network)

The key here is "population" – Telstra's impressive coverage is actually somewhere between 22 per cent and 30 per cent of the Australian land area – depending on the figures you quote. That means there's 70 per cent of Australia where there's no mobile coverage, so being with Telstra doesn't mean it "always works".

What you need to do is consider the coverage in the places that matter to you, not the place you might go once in a blue moon.

Your home, your work, the key parks or places you go with family.

How can you check? Two ways: ask people you know which telco they're with, and what the coverage is like here or there.

Or, switch! Get a simple pre-paid plan and have a go yourself. You might just be surprised by which network works for you.

Cheapest mobile plan with unlimited data:

4. Trial or initial costs

It's critical to note that with a lot of the telcos today the advertised price is actually an introductory price. That means that what appears to be $40 now might be $47 after three months or three recharges, or perhaps the advertised price includes a credit for the first month.

This is a great way to switch and save, regularly. If you are willing to switch telcos every few months, you could save a lot of money across the year by just following the great deals.

But just remember that if you sign up for a great deal, factor in the long-term cost of the switch, including the "regular" cost of the plan.

5. Do you need a phone?

In 2024 we started to see real incentives hit the market again from the big telcos when key mobile phone announcements happened. This was to entice you to sign up for a long-term plan, get a cheap price on that desirable smartphone and, hey presto, you're connected.

But remember, what are the hidden costs? So, if you want that new phone, consider the price of the phone outright and a few years of mobile coverage at an affordable rate to see if you're not better off doing your own "deal" by simply switching to a low-cost telco and buying a phone outright.

Telcos are required to quote the total cost of a plan over the timeframe, so look at that number and then compare multiple plans that might just save you money.

READ NEXT: What parents need to know when choosing a mobile plan for kids