Telstra recently shuffled up its plans, ditching its long-standing “Mobile Accelerate” moniker and switching to the “Go Mobile” product line. The new plans range from almost identical to the old, right up to around double the data. Perhaps the bigger story is that Telstra finally followed Optus' and Vodafone’s lead, ditching expensive per-MB overage fees in favour of an auto-upgrade system.
More data, less problems
Last year Optus made headlines by switching to auto-upgrades. This new billing format would see customers pay just $10 when they went over their monthly data allowance, at which point they would be granted an extra 1GB for use until month’s end. Go over that extra 1GB and it’s $10 for another, and another. When the next billing cycle starts everything reverts back to the original base plan and you’re free to start again, if you want.
Vodafone quickly followed suit with an identical scheme ($10 for 1GB) and customers have been cheering ever since. With both its major competitors adopting this new customer-friendly service, it was only a matter of time until Telstra followed suit.
Telstra will now do you the same deal. Go over your data allowance and for $10 an extra 1GB will be yours to use as you please until month’s end. Repeat ad infinitum.
Like the sounds of a shock-less Telstra?
Click here for a list of the new Telstra Plans
Click here for a list of the new Telstra Plans
Why is this better?
Telstra’s old overage method was to charge you 3c per MB. The new system works out to around 1c per MB.
Admittedly there is one flaw: paying per MB means you only pay for how much extra you use, where an auto-upgrade system charges you for a whole GB whether you want it or not.
Example: You might have a 2GB cap and use 2.1GB in a month. Following the old payment method you’d only be charged around $3.30 for this overuse; in the auto-upgrade system you’re charged the full $10. So is auto-upgrading really better?
It comes down to two things: numbers and simplicity.
The numbers game is easy to figure out. Telstra’s old per-MB fees were 3x the new ones: 3c per MB vs 1c per MB. The problem is the new ones will always charge you $10 for the whole 1GB. So at what point is it better to have the auto-upgrade option? At about 333MB over your cap, or one third of 1GB.
This means that two thirds of all over-use data amounts you can expect to pay either equal-to or less-than the old per-MB costs.
The simplicity aspect is the best bit. You know you’re over your cap and that now every MB counts, but how far over are you? It doesn’t really matter. 1GB is a lot – about half or more of most people's monthly plans. It’s unlikely you’ll churn through this much extra accidentally, so just continue on using your phone like you normally would, safe in the knowledge that it’ll probably only cost you a tenner.
Telstra keeps you informed
All mobile operators in Australia have to notify you when you reach 50%, 85% and 100% of your monthly data allowance. The problem is these notifications are usually up to 48 hours behind; by the time you’ve received your 85% warning you may have gone over.
Telstra is much more timely. In fact, by the end of this year it’s planning to hit the 15-minute mark. This way you’ll get warnings in real-time and can make your own educated decision; are you willing to take the $10 hit for the month? The alternative has you accidentally tripping in to it and living with the consequences.
Original woman jumping image from Shutterstock
Alex Angove-Plumb
Digital Content Editor
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