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Mobile phone plans - what to ask before you buy
If you're about to sign up for a mobile phone plan, but you're not sure what to ask before you buy, these questions will help you choose the most appropriate mobile phone plan for you.
Click on a question below for more information.
- Usage: How will I use the mobile phone?
- Coverage: What mobile phone coverage is available in my region?
- Cost: What will the mobile phone plan really cost?
- Prepaid: Should I get a prepaid or monthly mobile phone contract?
- Change: What if I want to change my mobile phone plan or provider after I've signed up?
- Bills: What if I have problems paying my mobile phone bill?
- Contract: What is a contract?
- Discontinue: What if I want to discontinue my mobile phone contract?
- Theft: What if my mobile phone is stolen?
- Disposal: How do I dispose of my old phone?
- Handy hints
1. How will I use the mobile phone? 
Before you shop for a mobile phone and/or plan, identify how you will use the phone - that is, whether you use it rarely (for emergencies only), or moderately, or mostly for text messaging - or it completely replaces your landline. Also identify what features you need - mp3, phone, camera - will you really use them?
2. What mobile phone coverage is available in my region?
Mobile phone providers have maps of the main geographical regions covered by their phones, but these maps don't indicate areas where signal strength may be weak or non-existent. If you're considering a particular provider, ask them specifically about the reception in the regions you'll be using the phone.
3. What will the mobile phone plan really cost?
This all depends on the plan. Consider the cost of calls and connection charges. Other features may be available (for example, for call forwarding or voice mail) - check how much these cost to access and if you are likely to benefit from them.
You may be given hundreds of dollars worth of calls if you sign up for a capped plan around $50 mark - just make sure you wouldn't spend less on another plan, especially if you only use the phone rarely.
Monthly plans often include a 'free phone' which really means you pay for it as part of your monthly fee, rather than upfront. Ask how much the phone is really costing. Ask if you are contracted separately for the phone purchase, in case you have problems with the phone at a later date.
4. Should I get a prepaid or monthly mobile phone contract?
Ask for details on pre-paid and monthly contracts.
- Pre-paid means you purchase your own phone and pay in advance for calls - when the credit runs out, you can't make calls. You don't have to pay a monthly access fee, however pre-paid calls often cost more than calls made on monthly contracts.
- Monthly contracts typically involve a connection fee, an ongoing monthly fee, and call costs.
5. What if I want to change my mobile phone plan or provider after I've signed up?
Check various call plans before making a decision - you may have to pay a fee if, after you've signed a contract, you want to change your plan or provider. Some plans may require you to spend a minimum amount per month (whether you use the phone or not) and others have a 'cap' which, if exceeded, means you pay a lot more. Always ask about the consequences of exceeding the cap.
6. What if I have problems paying my mobile phone bill?
Ask your provider what happens if you need to change your plan because of difficulties paying your mobile phone bill. Not paying your mobile phone bill may result in your name being added to a list of people with credit problems, and this may affect your ability to obtain credit in the future.
7. What is a contract?
A contract is a commitment to purchase, and once it's signed you are legally obliged to continue with the contract for the term you signed up for (typically, around 2 years). Always read the contract carefully before signing.
8. What if I want to discontinue my mobile phone contract?
Ask what would happen if you can't continue with your contract. You may have to pay out the balance of the contract (or some hefty fees), even if you no longer have the phone.
9. What if my mobile phone is stolen?
Ask what to do if your phone is stolen. Generally you would advise the police and the phone provider, who should have the phone number barred so that you don't end up paying for lots of call you didn't make. If the provider offers insurance for lost phones, read the fine print before signing up.
10.How do I dispose of my old mobile phone?
Most old mobile phones in Australia end up as land fill, where they eventually break down and release dangerous contaminants which eventually get into our water and soil.
Before you toss out your mobile phone, find out if there is a mobile phone recycling initiative operating in your area. For more info, see the website for Mobile Muster - the official recycling program for the mobile phone industry.
11. Handy hints
- If you have any issues about your mobile phone service, contact the provider and ask for their assistance. Be polite and put your concerns in writing. If that fails, consumers and small businesses can contact the Telecommunications Industry Ombudsman (for problems about the service) or the Office of Fair Trading in your state (for problems about the handset).
