Close to half of all Aussies opt for one Telco, but up to $495* in savings on offer for those who switch

Today, leading financial comparison site Mozo.com.au has released its latest research report, revealing how Aussies could save $100s a year on mobile and broadband plans by switching to a Mozo Experts Choice Awards winner.

“When it comes to mobile and broadband plans, consumers who shop small can save big, but according to the ACCC less than 11% of Aussies choose these smaller players" explains Mozo's personal finance expert, Rachel Wastell.

“Many consumers opt to stick with their current plans for convenience or loyalty, and close to half of Australians choose one provider over all others, but the truth is consumer loyalty can often come at a cost.”

“As the rising cost of living squeezes household budgets, Aussies should be looking to save money however and wherever they can. Consumers need to remember that loyalty and convenience are not key reasons to choose a mobile or broadband plan, unless you’re using that loyalty to negotiate a better deal.”

Mozo’s “The Cost of Connectivity” Mobile and Broadband Report was completed as part of the Mozo Experts Choice Awards 2024, where judges compared a whopping 632 mobile and broadband plans from 80 different providers to identify the best value plans and providers.

Mozo experts looked at varying download speeds, data inclusions and took into account the set up costs, monthly charges and any introductory discounts to find the best value plans, identifying them as the winners of the 2024 Mozo Experts Choice Awards for Mobile & Broadband Plans.

Mozo research shows broadband users could save between $72 - $495 a year, and mobile phone users between $63-$142 a year, by switching from the average plan cost to one of Mozo’s award-winning plans.

Consumers who shop small, could save big

Mozo’s comprehensive analysis of the telecommunications market involved comparing 258 NBN and 5G broadband plans from 56 providers, and 374 4G and 5G postpaid and prepaid mobile plans from 49 providers. 

“Mozo research shows shopping around for a new mobile or broadband plan could help Aussies pocket $100s of dollars in annual savings, as smaller providers and MVNOs offer comparable plans at a much lower price,” stresses Wastell.

According to the latest Australian Competition and Consumer Commission (ACCC) Communications Report, close to half of all Aussies choose Telstra for mobile and broadband services. 

Telstra owns 44% of the NBN market, 38% of the non-NBN (5G broadband) market and 43% of the mobile services market. Optus, Aussie Broadband and TPG/Vodafone are also major players taking up a significant share. Smaller retailers account for 11% of the mobile plan market, 8.1% of the Non-NBN market and 1% of the NBN market^. 

80% of the broadband plan winners were smaller brands, with Flip taking out the overall Broadband Provider of the Year award. TPG was the only major retailer to secure a win across all NBN and 5G categories. For mobile plans, TPG, Optus, Vodafone and Aussie broadband received awards, but 70% of all winners were smaller brands. 

Spintel was a standout MVNO performer across both mobile and broadband categories, winning Mobile Plan Provider of the Year award and receiving multiple awards for great value NBN and 5G broadband plans.

“Mozo’s expert analysis of hundreds of different plans reveals Aussies could save a substantial amount by opting for a Mozo winner,” Wastell says.

"Consumers should be comparing their plans to those on the market, to avoid overpaying. Even if you don’t want to switch, knowing what’s out there can give you the upper hand when you call your current provider to ask for a better deal."

Mozo's 5 Key Money Saving Tips

1. Avoid the “Loyalty Tax”: Regularly compare plans to see if there’s a better deal.

2. Negotiate: Record cheaper competitor plans to negotiate with your provider.

3. Check Usage: Check your data, call, and text usage to avoid overpaying.

4. Opt for the underdogs: Smaller brands can often provide cheaper deals.

5. Don’t blindly bundle: Opting for the cheapest mobile and broadband deal separately can work out cheaper than bundle deals, so do your research!

* $495 savings figure based on the average monthly costs of Ultra Fast NBN Broadband plans of $147 based on the Mozo database vs the average Mozo winners' monthly cost of $106 across three years including any introductory offers. Data collected between 7 March and 3 April 2024.

^ ACCC Communications Market Report 2022–2023