Mobile thinking: How to save money on your phone bill

Last updated on September 30th, 2025

Has the cost of living made you take a closer look at your monthly phone bill?

If you’re with Optus, you might be worried about more than just the amount they are charging you.

The telco is embroiled in another scandal after a scheduled firewall upgrade prevented about 600 triple-zero (000) calls from connecting to emergency services. The breakdown has now been linked to the deaths of three people.

This comes after the Federal Court recently fined Optus $100 million for appalling sales tactics, and an Australia-wide outage that affected more than 10 million customers in 2023, including calls to 000.

Even if you’re not with Optus, the news may prompt you to review your mobile plan and ask some hard questions of your provider.

While few would dare to promise cheap phone bills, there are ways to reduce the telco toll to help cut back on household costs.

Review your monthly phone bills

Look at your past three phone bills. Review what you spend and why. Are you using too much data? Can you cut back on streaming? Switch on wi-fi more often? These simple steps can reduce any excess data charges within the next billing cycle.

 

 

Check how often the cost of your monthly plan has risen over the past year or so. Just because you are under contract doesn’t mean you are immune from price rises. While the price of the phone you bought remains fixed, telcos often increase monthly plans.

In June, Optus raised the price on several mobile plans, including Choice Plus, up from $52 to $55 for 50GB a month. While this was still cheaper than Telstra ($70 for 50GB per month), Vodafone’s lowest plan was $39 for 60GB (for the first 12 months).

Keep an eye on competitor websites. Telcos regularly offer deals – be it on price, data or both – so the more flexibility you have, the easier it is to switch to a cheaper one.

If you own your phone outright, a pre-paid or SIM-only arrangement is likely to be more cost effective as well as flexible.

If you are being charged more or don’t understand some of the charges on your phone bill, raise it with the provider and ask them to explain. Unclear bills are one of the most common complaints to the Telecommunications Industry Ombudsman.

Look beyond the price

It is important to look at more than just the amount of money charged to your phone. Consider what you are getting for that money.

Most plans these days include unlimited calls and texts within Australia (if yours doesn’t, ditch it). Before you sign up for anything, check:

• • The amount of data included
  • Network speed and coverage (particularly if you live in a rural or remote area where the network can be patchy at best)
  • How easily you can switch plans
  • Charges for international calls and text
  • If there are any added incentives, such as streaming services

 

 

Even if there are extras marketed as bonuses, they might not be worth the cost of a mobile plan signed over 12 to 36 months. Ask yourself how you use your phone. How often do you call or text overseas? Do you really need another streaming service?

Don’t fall for shiny things

We know it’s tempting. When everyone is talking about the latest Apple, Samsung or Google Pixel on the market, that familiar FOMO washes over you. Is the new phone so much better than the one you have? And, most importantly, can you afford it?

While buying a phone as part of a plan might help spread the expense, you could end up paying a lot more than if you bought the phone outright. Your monthly phone bill will be a lot higher for a minimum of 12 months and usually a lot longer.

When you pay for your phone upfront, you can choose a prepaid or SIM-only plan for calls, text and data rather than lock into long-term expensive contracts.

If you cannot afford to buy a phone outright, resist the temptation. Instead, start a savings plan to upgrade next time.

Prepare to cut ties

If your phone bill is excessive, or your mobile plan really isn’t working for you, check your contract to see what it will cost to cancel. An early termination fee (ETF) is usually either a percentage of the remaining contract or the full cost of the contract. Some providers will let you just pay for the handset.

 

 

Compare the ETF with the costs you’re unhappy about on your monthly phone bills. If you determine it’s better to bail early than to keep paying excessive charges, ditch your plan and find a new one.

If you are unhappy with your provider for other reasons, such as the latest Optus scandals or consistent issues with your network, you might still want an exit plan.

Don’t just ignore bills in protest, however. Call your telco, chat online or drop into the closest retail store. Give them the opportunity to make any mistakes up to you, and you could walk away with a much better deal.

You can even ask for a high bill to be waived, particularly if you are in financial hardship. Explain your situation and ask if they can reduce or waive the bill.

Making a complaint

If you have an issue with your phone bill or service, complain to your provider as soon as possible. Telcos are given 15 working days to resolve non-urgent complaints and two working days for urgent ones. Ask them to suspend any outstanding payments while they investigate.

If the provider is dragging the chain or giving an unsatisfactory response, take the pressure down and make a complaint with us. Read all about how we help handle telecommunications complaints.