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How to Reduce Phone Bill Amidst Hikes

How to Reduce Phone Bill Amidst Hikes

Mobile phone bills in Australia have been on the rise, particularly due to price hikes by the three major telecom providers: Telstra, Vodafone, and Optus. These increases can put a strain on your budget, but there are ways to reduce your phone bill and keep your expenses in check.

In this article, we will explore the mechanics of reducing your phone bills in light of these recent price hikes. By following some simple tips and strategies, you can save money on your phone bill without compromising on your mobile needs.

The price hikes

The three major telecom providers in Australia, Telstra, Vodafone, and Optus, have implemented price hikes recently that have impacted phone bills across the country. These price increases have left many consumers seeking ways to reduce their phone bills without sacrificing their connectivity needs. Understanding the reasons behind these price hikes and how they affect consumers is crucial for finding effective strategies to minimise expenses.


Telstra, being the largest telecommunications company in Australia, has raised its prices in response to various factors. Canstar detailed Telstra’s price hikes for the Upfront mobile plans effective 4 July, applicable to SIM-only users and customers paying for a new phone on Telstra plans:

The Basic package priced at $58 per month with a 40GB data allocation is set for $62 per month and the data allocation is at 50GB, but the 5G access speed cap is still at 250Mbps. The Upfront Essential plan boasting 180GB fast data and no 5G speed caps has its monthly bill going up from $68 to $72. The Upfront Premium plan of 300GB fast data and unlimited 5G speed caps is to be set at $95 a month up from 89.  

Telstra Starter plans with 2GB of data will climb from $47 to $50, but a higher discount available to concession card holders is set to cover the price difference. If you’re a Telstra Bundle subscriber, the monthly charge is also at $50 monthly up from $47, but data will be boosted from 15GB to 25GB.

One significant factor is the continuous investment in expanding and improving their network infrastructure. The cost of maintaining and upgrading the network to meet the increasing demands of consumers is often passed on to customers through price adjustments. Telstra has also cited rising operating costs, including staff wages and compliance with regulatory requirements, as reasons for the price hikes.


Vodafone, another prominent player in the Australian telecom industry, also pulled the trigger on price hikes last 1 April, with an additional $5 put on most of its postpaid plans, but will be compensating for the increase with more data allowances. Vodafone has highlighted the need for ongoing network enhancements, including the expansion of their 5G network coverage and capacity, as a driving factor for the price adjustments.

Additionally, Vodafone has mentioned the need to invest in customer service improvements and digital innovations as contributing factors to the price hikes. This will affect subscribers who signed up before 24 January 2023.


Optus, the third major telco in Australia, has not been immune to price increases and were forced to do so in 2022 by adding $4 to current plans and also compensate with more data allocations. Similar to Telstra and Vodafone, Optus has pointed to investments in network infrastructure and the growing costs associated with providing high-quality services as reasons for adjusting their pricing. Optus has emphasised the importance of ongoing investment to meet customer demands for faster data speeds, improved coverage, and advanced technology.

Tips to reduce your phone bill

By implementing the above strategies, you can navigate the current landscape of rising phone prices in Australia and keep your phone bill within your budget.

Evaluate your phone usage

The first step to reducing your phone bill is to evaluate your phone usage. Take a close look at your monthly bills to identify patterns in your usage. Are you exceeding your allocated minutes, texts, or data limits? Understanding your usage habits will help you choose the most appropriate plan for your needs.

Choose the right plan

With a clear understanding of your phone usage, you can now select the most suitable plan that aligns with your needs. Take advantage of the competitive telecom industry in australia by comparing different plans from various providers. Look for plans that offer sufficient minutes, texts, and data at an affordable price. Consider prepaid plans, which allow you to control your spending and avoid bill shock.

Negotiate with your current provider

If you’re currently tied to a contract or have been with your provider for a long time, it’s worth reaching out to them and negotiating a better deal. Contact customer service and explain your situation, expressing your desire to reduce your phone bill. In many cases, providers are willing to offer discounts, promotions, or alternative plans to retain loyal customers.

Use wi-fi and data saving

To minimise data usage, connect to wi-fi networks whenever possible. This will help you avoid excessive data charges. Additionally, enable data-saving features on your phone, such as compressing images, restricting background data usage, and disabling automatic app updates. By optimising your phone’s settings, you can stretch your data allowance further.

Bundle your services

Consider bundling your mobile phone service with other services, such as internet or cable tv. Many providers offer discounts and incentives for bundling services together. Consolidating your bills can lead to significant savings and simplify your monthly expenses.

Review and remove unnecessary extras

Review your phone bill for any additional services or features that you no longer need or use. This might include add-ons like insurance, extended warranties, or premium content subscriptions. By removing these extras, you can eliminate unnecessary costs and reduce your monthly bill.

Take advantage of promotions and discounts

Keep an eye out for promotions and special offers from your provider. These can include discounted rates, bonus data, or free upgrades. Take advantage of such deals when they align with your needs. It’s also worth considering switching providers if a competitor offers a better deal or incentive.

Consider sim-only plans

If you already own a phone or prefer buying a phone outright, consider sim-only plans. These plans offer lower monthly costs since they don’t include device repayments. Sim-only plans are flexible and allow you to choose a plan that suits your needs without paying extra for a new phone.

Track your usage and set limits

To avoid unexpected charges, utilise your provider’s app or other third-party apps to monitor your usage regularly. Set usage alerts or data limits to receive notifications when you’re nearing your limits. This way, you can control your usage and prevent excessive charges.

Stay proactive, informed, and willing to explore different options to ensure you’re getting the best value for your money in the ever-evolving telecoms industry.

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DISCLAIMER:  This article is for informational purposes only. UBOMI has no relationships with any company or organisation mentioned in the article.