Australians are paying more money than ever for lightning fast internet and more mobile data per month than was needed to power an entire city grid system a decade ago – but do they actually need any of this?
The ACCC’s 2020-21 Communications Market Report questions this, while noting that telco networks generally meet the demands of Australian households and businesses that are heavy uses of broadband services.
On average, we are paying more in exchange for this speed and data. “For people who had an existing plan that already met their needs, it is unclear if the higher speed or extra data is sufficient trade-off for the higher price,’ the report notes.
In 2020-21, an average mobile consumer on a post-paid contract used only 11.8 GB of data per month.
The median data allowance is triple this, at 35 GB per month.
Telstra, Optus and TPG all increased prices this year, with the price of entry-level pre-paid mobile services leaping by an average of 16.2 per cent in 2020-21. They do well to hide it, too.
“Reducing the expiry periods on prepaid plans from 35 and 42 days to 28 days is a price increase by stealth,” ACCC Commissioner Anna Brakey said.
“Over a year, it means consumers are recharging more often, and therefore paying up to 25 per cent more for their mobile phone service.
“While consumers are getting more data allowance than before, it is unclear if they want or need it, as an average person isn’t currently going anywhere near using the average mobile data allowance.”
Broadband services also increased in 2020-21, buoyed by many telcos trialling ‘free’ higher speed NBN plans, of which 6-11 per cent stayed at the higher rate once the trial ran out.
“Higher speed NBN plans cost consumers about five to ten dollars more per month than the most popular speed plans, but it is not yet clear how many consumers will consider this is good value as their promotional offers end,” Brakey said.
“We encourage consumers to weigh up their internet needs and choose their broadband plan based on what they think represents better value, given the higher prices being charged for some plans.”
Data downloaded on broadband jumped by nearly 20 per cent in 2020-21, no doubt a result of pandemic-induced lockdowns, with fixed broadband accounting for 90 per cent.
