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Consumer watchdog accuses telcos of data price increases ‘by stealth’

The consumer watchdog says the average Australian mobile user is paying more for data they simply do not use and it wants the industry to take action.

Dec 10, 2021, updated Dec 10, 2021
Image: Unsplash

Image: Unsplash

Data plans offering “more-for-more” are increasingly offered by Optus, Telstra and Vodafone but the average person is using less and paying more.

A report by the Australian Competition and Consumer Commission found people on a postpaid plan use just 11.8 GB of data of their monthly 35 GB data allowance on average.

People on prepaid plans use an average of 6.3 GB per month compared to a data allowance of 30 GB.

Commissioner Anna Brakey said a decision by operators to reduce prepaid plan expiry from 35 days to 28 days was a price increase “by stealth”.

People were recharging more often and over a year were paying up to 25 per cent more for their mobile phone service, the report found.

Broadband services also increased costs in 2021, with people paying up to 11 per cent more – $10 a month – for a higher-speed plan than they did in 2019.

Telco comparison service WhistleOut said people tend to treat their bills as “set and forget” but instead they should take advantage of incentives for new customers.

Spokesman Kenny McGilvary said many providers offer six-month price discounts and consumers can cut costs in half by switching mobile and internet plans to a new operator.

In 2021, about 650,000 households trialled higher-speed internet plans at no cost through promotional offers, but 46 per cent reverted to lower-speed plans when the offers ended.

The report found people did not consider paying more for fast internet to be good value when slower plans worked for them.

The watchdog said consumers should weigh up their internet needs and choose a broadband plan relevant to them, given the higher prices being charged for some plans.

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