Telecom Tricks That Encourage You to Spend More Money

6 April 2017

The recent launch of the new Samsung Galaxy S8 may have got you or someone you know in the mood for an upgrade. In today’s market you will need to have your wits about you if you want to get good value for money, the fact that there are dozens of phones and hundreds of plans doesn’t make it easy either.

You can save money simply by educating yourself on the tricks that telecom companies use and that’s exactly what we are going to cover here today. Whether you have heard about tricks such as the decoy pricing method or others, we will shine light on them today and hopefully help you save money.


Multiple mobile device options and hundreds of telecom provider plansApple is notorious for using the decoy-pricing model; take for example its 32GB iPhone 6S model that went on sale for $929 whilst its 128GB was $1,079. Plenty of customers will think that buying the extra 96GB for an additional $150 is a better investment for a fraction of the total price, but the reality is that the 32GB model will generally suffice for most buyers.

One service I greatly believe in is Google Photos, it stores all of your photos for free by backing them up in the cloud, all you need to do is have a Gmail account. Their app even has a categorisation technology which allows you to search for e.g. dog, car, Paris etc. and it brings all pictures containing or relating to that search term to your results. This allows you to delete the photos from your phone and free up space on your device. Installing this free APP could save you that $150 you were going to spend on upgrading.

Australian Telco companiesThe decoy-pricing strategy isn’t home to only manufacturers because network providers like to squeeze money out of you too. Optus for example offer a $65 per month plan, which includes 3.5GB of data, whilst their $85 per month plan includes 10GB. They try to make that extra 6.5GB of data seem like a good deal for only an extra $20 per month. This may seem the case, especially when the excess data rate is $10 per GB when you exceed your limit.

However, if you want to save money then take this piece of information seriously and you could save $240 per year or $480 per 24month contract. According to the Australian Bureau of Statistics (ABS) the average Australian consumes 1.8GB of data per month on their mobile device.

Saving money on mobile devices and telco plansFollowing on from that comes contracts, they are the worst idea possible because you are locked into that data plan for the term, whilst everyone around you upgrades to unlimited calls, texts and other perks. This is why month-to-month or prepaid plans offer more flexibility and provide better value for money, discounts and deals. The $1,000 you may have saved by not buying your device upfront is certainly paid to the provider over the course of your 24-month contract. Check this article out for how you can save even more money.

If you signed a contract with Optus and chose a 32GB iPhone 6s on the $85 per month plan mentioned earlier, you would pay a total of $2,112. Compare that to buying the same phone online for roughly $900 new, choosing Optus’ 10GB month-to-month SIM-only plan for $40 per month and the total cost to you over a 24-month term is $1,819. That’s close to saving $300, plus you can change plan when you like. If you need some more advice on how to go down this route when choosing non-contract plans, then this article covers it all.

If you have any other pieces of advice that you can share with us, please let us know in the comments section below.


TOPICS:   Money   Mobile Phones

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