Plan Change Pitfalls

Posted: by Scott Hales

There are currently over 2000 telecommunications service providers (SP’s) in Australia and most of them offer many different plans and packages. Finding the right provider and (just as importantly) the right plan to suit your needs is becoming an increasingly complex and confusing process.

Let’s look at landlines for example. Many SP’s will offer multiple plans ranging from pay as you go style to bundled plans that include all your calls and an ADSL connection for one flat fee each month. Most SPs won’t take your call patterns into account when offering you a plan, they will try and sell you on the plan they want to sell, not the plan that best suits your needs.

For example, I met a business owner the other day that had just signed up to a $149.99 per month plan for his main landline. The plan fee included line rental, unlimited local, national and calls to mobiles. He was very happy with that structure as it provided him with peace of mind knowing his costs wouldn’t increase if the business was making more calls from one month to another. However, when I ran four of his previous bills through our comparison tool I found that he wasn’t making nearly enough calls to justify the plan fee. Had he put the line on a pay as you go style plan he would have saved around $45 a month.

So it pays to be vigilant when looking at changing anything on your account, although a plan may sound great when being “pitched” to you, it doesn’t necessarily mean it will save you money. Unfortunately the business owner is now stuck on a 24 month contract and will end up paying over $1,000.00 too much in that time.

Some things to be mindful of when looking at a new plan are; the number of calls you make to different destinations (local, national, calls to mobiles, international etc), the duration of the calls to each destination and how much your call patterns fluctuate from month to month.

Barefoot Telecom offers obligation-free bill comparisons to ensure we find the best plan to suit your call patterns and save you as much as we can. Plans are also flexible so if your needs change in the future, you can change your plan to accommodate the change in call patterns. Call 1300 017 622 to find out how you can save money on your telecommunications.

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