A new player is set to join the Aussie mobile market: ZMobile, from the digital financial services company Zip. Its aim is to blend the mobile offshoot with its financial services, offering mobile plans first to Zip customers (launch date to be confirmed) before expanding to non-customers later in the year. However, there’s often a catch when established brands launch telco services — existing customers benefit the most (from bundling or discounts), while standard pricing for non-existing customers can often be more expensive.
While it’s usually utilities brands, such as energy or internet providers, that step into the mobile market, it’s not the first time that a financial service provider has moved into the telco space. Internet and mobile providers Tangerine and More have a partnership with Commonwealth Bank after the bank took a 25% ownership of the sister telcos in 2021. With this partnership More offers discounts on mobile and internet services exclusively to CommBank customers.
Zip Co-founder and Head of Strategic Growth, Peter Gray, says that ZMobile will feature competitive pricing and a seamless customer experience that will offer a “better deal” to Aussies.
What is ZMobile offering?
We reached out to Zip for further information and while they weren’t able to share all the details ahead of the launch, a spokesperson confirmed the following:
- Prepaid plans starting from $10 per month
- eSIM available
- Unlimited national talk and text
- No speed restrictions with access to the Vodafone/TPG 4G and 5G mobile networks
- Data with rollover
- Global roaming and international calling capabilities
Zip customers will be the first to access ZMobile plans, via the Zip app which is being touted as a ‘market-leading’ and simple four-click process. Zip has promised some ‘exceptional’ offers will be available to Zip customers.
As to the criteria that existing Zip customers need to meet (such as minimum sign up or spend terms, etc.), and just how generous these offers are, this remains to be seen. And for non-Zip customers, ZMobile will need to position itself as a good value for money telco provider to compete with an already somewhat crowded market.
What to look out for with bundle or existing customer discounts
It’s always good to check the details of any plan or service you sign up for, and it’s no different when it comes to telco services offered by traditionally non-telco brands, as there can be a catch.
Even for energy providers that also offer telco plans, these services are often encouraged to be bundled with multiple services from the same provider. Prices offered on an internet or phone plan from a utilities provider might look like good value for money on the surface, but that’s usually with a discount applied for bundling — if you look at the standard price without a discount, often these plans are more expensive than what you’d get from other providers.
For example, AGL, which offers mobile and internet plans alongside its electricity and gas, offers generous discounts to mobile customers who already have an AGL energy plan. This sees the standard price of mobile plans drop by around $10 per month ongoing. However, you can get standard pricing from comparable providers (including Southern Phone, which is owned by AGL), for several dollars less than the standard price for non-AGL customers.
Likewise, discounts offered to existing CommBank customers for More’s range of mobile plans drop the monthly price down by $10 for a 36-month period, while the standard pricing is a few dollars more than comparable offerings from its sister brand, Tangerine.
“Many challenger telco brands have come and gone over the years, including offerings from energy providers - but Zip’s move into the market could be unique. It’s too early to say how these plans will stack up, but the promise of deals beginning at $10 per month has our telco team watching this space,” said Tara Donnelly, Canstar's Managing Editor — Utilities & Finance
“However, be careful of any providers that save their best plans for customers who bundle. You shouldn’t need to pick up multiple services from a telco to get the best prices, especially when you can potentially save more by mix-and-matching plans from different brands.”
Ultimately, the greatest benefit from these sorts of bundled plans tend to be for customers who already have their financial service or utility bills with that particular provider. For anyone simply looking for a mobile (or internet) plan who isn’t a customer of one of these utilities or financial service providers, it’s important to compare a range of plans. Check the standard pricing after any discount expires, and conditions for receiving those discounts.
