What makes a good mobile phone plan

Australians are among the most loyal consumers in the world, we stick like glue to our providers of services like insurance, banking and mobile connectivity for no reason other than "it works".

The fact is, almost all of us could save money if we just took the time to switch.

In the case of mobile phones, I've seen people save over $500 a year by snapping out of that loyalty bubble and shopping around.

But what makes a great mobile plan? Surely it's not just about the cost?

Here's five things to look out for when comparing your next mobile plan.

No worries calls and texts

Some people today weren't even born when we were paying per minute for calls and being charged for every single text message we sent. On a busy month, you could have a $600 phone bill. Today, those woes are gone, but that doesn't mean you should just sit by and accept the plan you're on just because it's got unlimited calls and texts.

Most phone plans offer this, in fact, it's rare to find one that doesn't. So if you fall into that category of people who send texts whenever you want and make calls without regard for the limit then stick to those unlimited plans, it's the smart move.

Data to suit you

It's critical when comparing plans that you don't get over-excited about what's on offer. For example, a plan that has 100GB of data for $60 seems good, and the plan with double that data for just a few dollars more might seem remarkable. But do you need that much data?

You probably don't. The average consumer is using something in the order of 15GB of data per month, so if you're signing up to a plan with 100GB, what are you doing with the rest?

It's being wasted, but you feel good because you have this "buffer" over and above your normal use.

Facts are, today, there aren't excess usage charges. So if you have 15GB of data available on your plan, and you start using 16GB one month, that extra GB is probably going to be at a slower speed. Check with the telco you're considering to see how they handle that situation – it's unlikely it's going to result in anything similar to bill shock.

Payment terms

The idea of a long-term contract can be comforting to some people. You're not in a position to buy a new phone outright, so you sign up for two or three years with a telco.

Take the advice above and limit what you sign up for, because you can always add more if needed.

However, a popular approach these days is what's called "BYO SIM" or "SIM Only" plans. These don't include any device at all, and assume you have a working mobile phone.

From there, you get a SIM card from the telco and connect to them on your existing phone.

Affordable SIM-only plans

The benefit of "SIM Only" is you're not required to be tied to a contract. You can go month to month with your payments and therefore switch to better deals at any time you choose.

Additionally, the best savings come from long-term up-front plans. There are 6-month and 12-month plans that could save you hundreds per year by paying up-front.

Coverage

It's critical that your phone works at home right? So check what works for you, and don't assume. If you've been with one network for ages "because it works at my house" pop down to a service station and grab a SIM card from another telco, set it up – don't move your number over, just use it on a new number and see how the coverage is at the places you frequent most.

If it works for you then find a plan on that network and switch your number over to save.

Inclusions or extras

It's not a common thing, but keep an eye out for additional benefits.

Some telcos have reward programs where you earn points for being with them that can go toward goods or services, other telcos allow you to use their systems to bundle your subscription services together and save money.

And on the actual mobile plan side, there are things like data rollovers, data gifting and even family sharing of data limits that could work in your favour.

More SIM-only plans

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