Most Australians would rather stick with their current telco, whether out of loyalty or apathy, than go in search of a better deal.
Only a third of Australians have changed mobile providers in the last three years, according to figures from finder.com.au, despite both Optus and Vodafone offering 'no-strings attached' trial periods to entice Telstra customers after its spate of network outages. Both Vodafone and Optus have worked to improve their networks in the last few years after their own high profile outages and performance issues.
![68 per cent of people stayed with the same telco for the past three years just for the sake of it.](/web/20170104195936im_/http://www.theage.com.au/content/dam/images/g/t/7/i/4/l/image.related.articleLeadwide.620x349.gti9tv.png/1482803025617.jpg)
Meanwhile the growing number of budget Mobile Virtual Network Operators — reselling access to the Telstra, Optus and Vodafone networks — has also failed to encourage more Australians to change providers in search of a better deal. This year Telstra opened up its 4G network to reseller partners including Aldi Mobile, Woolworths, Telechoice and Better Life, before which MVNOs could only offer access to Telstra's slower 3G network.
Of the two-thirds of Australians who stuck with the same mobile telco over the last three years, 16 per cent did so because of limited access to rival networks in their area. Of the rest, 7 per cent stayed put because they found it too confusing to switch provider while 15 per cent felt that it required too much effort.
That leaves 68 per cent of people remaining with the same telco because they "like sticking with the same provider". Australians are "creatures of habit," even though many could likely find a better deal if they haven't changed telco in at least three years, says finder.com.au telco editor Alex Kidman.
"We like to stick to what we know, whether it's receiving bills in the same format or punching the same number into a text message to see how much credit we've spent," Kidman says. "While this offers a sense of security, it often means we're spending more than we need to."
"Phone companies don't do themselves many favours with complex forms and processes for switching, but the reality is that a little struggle through the formalities can equal serious money left in your pocket rather than handed over to your telco."
While the research figures don't examine why Australians prefer to stick with the same provider, Kidman says their motivations range from loyalty and sentimentality, to a desire to maintain the status quo or simple apathy. As Australia's incumbent telecommunications provider, Telstra still retains rusted-on home and mobile customers from its days as the government-owned Telecom Australia.
Of those Australians who have switched mobile provider in the last three years, 73 per cent did so in search of a better deal — some shopping around as their contract was set to expire. Meanwhile 30 percent cited "better coverage" as a factor in changing telcos.
"Telcos and providers are constantly competing for new customers and offering compelling deals," Kidman says. "Those living in rural or regional areas may feel like they don't have much choice, but the rise of virtual mobile providers using the networks of Telstra, Optus and Vodafone mean that they do actually have choices to make. Whether you're fully metropolitan or remarkably rural there's really no excuse for not shopping around."
"Saving $20 per month over a 24-month contract adds up to a few hundred dollars you could spend elsewhere. Plan needs can change over time, particularly as we're consuming more and more data, so it's essential to regularly reassess whether you can get a better deal elsewhere."
0 comments
New User? Sign up