How to choose a mobile plan

Choosing a mobile plan should be simple: pick the one with enough data at a price you're happy with. In practice, there are dozens of providers, many of them using the same handful of networks, with plans that differ in data, inclusions, contract terms and extras. This guide gives you a clear way to choose.

We don't recommend providers or publish prices, which change constantly. We explain what to look for and where to find reliable information.

Step 1: Look at how you use your phone

The best guide to the plan you need is how you use your phone now. Your phone's settings show how much mobile data you've used in recent months, and your past bills or account will too. The ACMA says telcos should provide a way to estimate the data or calls you might use, which helps if you're new to mobile or changing habits.

Think about:

• Data. How much do you use on mobile, rather than home Wi-Fi?
• Calls and texts. Many plans include unlimited standard national calls and texts, but check, especially for international calls.
• Where you use your phone. Home, work, commute and places you travel regularly.
• Travel. Do you use your phone overseas?

Step 2: Check coverage first

Coverage is the one thing a cheaper plan can't make up for. A plan is only useful where it works. Different providers use different networks, and coverage varies, especially outside major cities and inside buildings.

The ACMA says telcos should publish their mobile network coverage on their websites. Check it for every place that matters to you, not just your home address. Our guide to mobile coverage explains how to read coverage information and what it can't tell you.

Step 3: Prepaid or postpaid

Prepaid

With prepaid, you pay before you use the service, usually for a set period such as 28 or 30 days, or for a longer period up front. When your allowance runs out, you recharge. Prepaid gives you tight control over spending and no ongoing contract. It suits people who want predictability or who don't use much.

Postpaid

With postpaid, you're billed after each month. Many postpaid plans are month to month with no lock-in, while others are linked to a phone on repayments. Postpaid can suit people who want a monthly bill, or who want extras such as included roaming.

Check what happens if you go over your allowance. Some plans slow your data; others charge for extra data. The Critical Information Summary should explain this.

Step 4: Buying a phone with your plan

Many people buy a phone with a plan and pay it off monthly. That can spread the cost, but it changes how flexible you are:

• you may have to pay the remaining phone balance if you leave the plan or provider;
• the phone might be locked to the provider's network;
• the total cost may be higher or lower than buying the phone outright, depending on the deal.

Alternatively, you can buy a phone outright and choose a SIM-only plan, which keeps your options open. Our guide to leaving a contract early covers what to check.

Step 5: Read the Critical Information Summary

The ACMA says telcos must give you a Critical Information Summary for any product or service and publish it on their website. It sets out key details in a standard form, so you can compare plans across providers. See our guide to the Critical Information Summary.

The ACMA also says telcos should publish information on payment methods, spend management tools, international roaming costs, their financial hardship policy, how they handle complaints and products for people with disability.

Step 6: Check the extras

Plans increasingly come with extras: data banking, international calls to certain countries, roaming packs, streaming subscriptions or extra SIMs to share data. These can be valuable, but only if you'd actually use them. Compare plans on the basics first.

Step 7: Check your phone works

Your phone needs to be compatible with the network. Since Australia's 3G networks were switched off, some older phones can't make calls, including calls to Triple Zero (000). See our guide to the 3G switch-off. If you're bringing your own phone, check with the new provider that it will work on its network.

Questions to ask

1. What coverage will I have where I live, work and travel?
2. What happens when I use all my data?
3. What's the minimum cost, and does any discount end?
4. Is there a contract or phone repayment, and what if I leave early?
5. Is the phone locked to your network?
6. What does roaming cost if I travel?
7. Can I keep my number? (See keeping your number.)

Switching

Switching mobile providers is usually easy, and you can normally keep your number. The ACMA says your current telco must transfer your number if you or your new telco ask. Don't cancel your old service first, as only an active number can be transferred.

Matching a plan to common situations

Every household is different, but a few common situations show how the steps above fit together.

A light user. Someone who mainly uses home Wi-Fi and makes a few calls each day may only need a small data allowance. A prepaid plan or a basic month-to-month plan can keep costs predictable. The main check is coverage where they spend their time.

A heavy data user. Someone who streams video on the train or uses their phone as a hotspot for a laptop needs a larger allowance, or a plan that handles going over the limit in a way they're comfortable with. They should check what happens at the limit: slower speeds, extra charges or an option to buy more.

A family sharing data. Some providers let several services share one data pool. That can suit families, but check how the pool is shared, who can see usage and what happens if one person uses most of it.

A frequent traveller. Someone who travels overseas often should compare roaming costs and any included roaming days or packs. The ACMA says telcos should publish their international roaming costs, so this information should be easy to find. Using local Wi-Fi or a local SIM overseas is another option.

Someone who wants the newest phone. Buying a phone on repayments spreads the cost but ties the phone to the plan. Before signing, work out the total you'll pay over the full term and what you'd owe if you left part-way through.

Managing your spending

The ACMA says telcos should provide tools to help you manage your spending. These might include usage alerts, the ability to bar certain services such as premium text messages or international calls, and apps that show your remaining allowance. Set these up when you join, especially for children's phones, so there are no surprises on the first bill.

A final check before you sign

Before you agree to a plan, read the Critical Information Summary once more and confirm the minimum cost, the monthly price after any discount, what happens when you reach your data limit and what you'd owe if you left early. Make sure your phone is compatible and that coverage works where you need it. Then save a copy of the CIS with the date.

Key points

• Base your choice on how you actually use your phone.
• Check coverage for every place that matters to you.
• Prepaid offers spending control; postpaid offers monthly billing and sometimes extras.
• A phone on repayments can limit your flexibility if you want to leave.
• Read the Critical Information Summary before you sign up.