What’s your budget?
This is the most important point. What can you afford?
Be careful though as plans can be deceptive with a number of traps.
Understand your usage
Have a read of your bill and understand how you use your phone. Total up the number of calls you make and who make them to. Many providers allow you to download an electronic copy of your bill which you can then analyse your bill with.
If you do that, look at the total number of calls you make each month and the average time of those calls. You’ll find this is important as various plans have different billing periods and flagfall requirements.
Call rates
This is one of the trickiest areas to deal with on phone plans. Keep in mind each plan has unique tricks like minimum charges and flagfalls. So one provider offering 50c per 30 seconds call with a 35c connection fee may be cheaper for many of your calls than a provider offering 90c per 60 seconds with a 40c connection fee. This is why it’s important to check the average call costs.
Friends deals
Many providers have plans where calls between people on the same network are free, or you can nominate friends for a discount rate. If there’s a small group of friends you call a lot, it’s worthwhile looking to see if you can save money that way.
Don’t ignore data
In the age of the smartphone, data is now a major revenue generator for mobile phone companies. Have a close look at your data usage and keep in mind everytime you check your email, look up a bus timetable or find a restaurant you’ll be downloading data. This can add up and if you are going to be a regular user of online services you shouldn’t choose a plan with less than 1Gb download.
Coverage
It’s important to remember that the phone and the plan are pointless if you can’t get a signal. Check with the store before buying that your home and work can get a reliable connection. Also, if you’re going to be on the road a lot you’ll need to choose the provider who covers those areas well.
The best way of finding out is to ask your friends and colleagues how they find their connections. They’ll have the best feedback on which providers have the most reliable service.
Roaming
If you travel overseas you’ll find international charges can be a killer, so check carefully what you’re up for when you’re travelling.
Locked phones
When entering a plan, you may find the “free” handset included is locked to the network you’ve signed up to. If you want to “unlock” it, there’s usually a fee of several hundred dollars to release your phone from captivity.
Watch your bills
The danger period when entering a new plan is the first few bills. This is when any hidden traps can bite you. Check those first couple of bills carefully to make sure there are no surprises.
If you find any bill shocks, take a deep breath and call your provider. Should it turn out the plan doesn’t cover something, the phone companies will usually move you to the next plan up that will keep you within your budget.
Mobile phone plans