Low-cost mobile plans ringing off as ALDI Mobile to lift prices by up to 28%

Low-cost provider ALDI Mobile will increase its plan prices by up to 28% and discontinue its lowest priced plans on 30 September, the same day major provider Optus will also hike prepaid plan costs by up to $5.

The retailers join a growing list of mobile providers increasing costs, with Canstar research revealing that once these changes take effect, only one plan on Canstar’s database will exist at $20 or less per monthly renewal, while just 14 will cost $25 or less.

ALDI Mobile’s adjustments follow its announcements in July that it would be scrapping its lowest cost tier, at $23, as well as the $29 plan, also effective 30 September. However, it is offering a ‘Price Promise’ that allows customers to lock in lower rates on these plans at their current prices until August next year. 

Source: Canstar. Data only plan changes not included. Services per family plans are 2 for $60, 4 for $95, 6 for $160.

Lower cost mobile plans continue to drop out 

These changes follow other movements in the market with hikes from major telcos – Telstra, Optus and Vodafone – as well as smaller providers such as Amaysim and Aussie Broadband. 

Moose Mobile and Swoop are the only exceptions, with the providers reducing prices when they switched to the Vodafone network this year.

Price rises typically include higher data allowances with ALDI adding up to 20GB more per person on family packs, and 35GB on one year super packs. However, many customers may see little benefit, with ACCC data showing the average Australian uses just 14.5GB of data per month.

Source: Canstar. Changes listed are for plans with 28 or monthly renewal periods only.

How to get ahead of the increases

For those looking for a more competitive mobile phone plan, shopping around for a plan from a new provider could be the solution.

Comparison between the major providers is also now more comprehensive, thanks to the new standards requiring Telstra, Optus and Vodafone to show the level of signal available in a location using the standardised four-tier scale of ‘no coverage’, ‘basic’, ‘moderate’, and ‘good’.

Using these maps, customers can check their home address and other frequently visited areas to make sure they will be receiving the best level coverage.

Canstar research shows the average price of a prepaid plan with at least 25GB of data that renews monthly is $41. If a customer were to switch to the lowest priced plan on the Canstar database, at $25, they could save $16 per month, which is an annual saving of $192.

Source: Canstar. Prepaid plan only, 25GB+, monthly renewal. Min renewal period of 28 days. Excludes annual/365 day plans.

Finding a cheap plan isn't impossible

Canstar's Utilities & Finance Editor, Tara Donnelly, says, “ALDI Mobile’s upcoming changes highlight why it’s important to keep an eye on your mobile plan – even if you’re with a value-focused provider. 

“Annual price rises are now typical in the telco space, and the lowest price today may not be the best deal in one, six or 12 months’ time. 

“Sub-$25 mobile plans were once the standard for budget-conscious Australians, but they are rapidly becoming phased out, especially by big-name telcos. Customers are being pushed away from simple, cheap mobile deals, towards pricier plans with additional features.

“Telcos like to soften the blow of price hikes by bundling in more data, but for the average Aussie, that extra data goes completely untouched. Paying more for extra gigabytes you won’t use isn’t added value, it’s just an added expense on your monthly bill.

“With ALDI Mobile scrapping its entry-level options and raising rates across the board, finding a cheap plan with decent inclusions is going to take more from the budget than ever before. But it’s not impossible: compare options outside of the brands you know to see how much you could save. 

“If your mobile plan is going up, don’t just accept it. Smaller providers offer competitive rates, and with standardised coverage maps now live across the major networks, it’s much easier to confirm you’ll actually get coverage where you live and work before making the switch.”

Source: Canstar. Based on plans on Canstar’s database with an ongoing data allowance of at least 25GB, excludes discounts.