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National technology writer Rod Chester reviews the iPhone 7 Plus and Apple's new AirPods.
THE release of the iPhone 7 has once again got Australians thinking about their phone plans.
But before you get carried away and sign up to an expensive two-year contract just to get your hands on it as quickly as possible, take some time to consider how you might find the best value deal.
It could mean not signing a contract at all, but it could also require a little patience.
Comparison site Canstar has crunched the numbers to work out whether you’re better off with a two-year handset contract, or just a good SIM-only deal — be it postpaid or prepaid — for the 32GB iPhone 7.
Sure, going SIM-only with the new iPhone means you’ll have to pay for the phone outright, but doing so could mean you get superior value for your money in the long run.
Choosing the SIM-only, no-contract path also gives you the flexibility of switching service providers whenever you like, so you can chase the best, most data-packed deals around.
HANDSET PLANS
If you’re not able to pay for the iPhone 7 outright, and don’t have the patience to save up the $1079 you need to buy it, then a contract plan will be for you. Just make sure you find the best value one you can.
Telstra, Optus, Vodafone and Virgin Mobile are all offering the iPhone 7 on two-year plans, although their features vary considerably, as do costs.
To compare apples with apples, we’ll need to determine what sort of plan inclusions we’ll want for the new phone.
Let’s set the bar at a minimum of unlimited local talk and text, plus a healthy 7GB of data. If we can get a bit more data, international minutes, or entertainment features as well, then it’s a bonus. Here’s what the four major carriers currently offer.
OPTUS
Contract period: 24 months
Plan name: $85 My Plan Plus
Monthly cost: $87
Data allowance: 7GB
Cost over 24 months: $2088
VIRGIN
Contract period: 24 months
Plan name: $87 Plan
Monthly cost: $87
Data allowance: 7GB
Cost over 24 months: $2088
VODAFONE
Contract period: 24 months
Plan name: $80 Red Plan
Monthly cost: $92
Data allowance: 9GB
Cost over 24 months: $2208
TELSTRA
Contract period: 24 months
Plan name: L Plan
Monthly cost: $99
Data allowance: 10GB
Cost over 24 months: $2376
As you can see, Optus and Virgin Mobile match our plan demands at a reasonable monthly cost. Vodafone and Telstra don’t offer contact plans with 7GB of data, so we’ve gone with the closest alternative above that allowance. This naturally means more expensive plans, but the trade-off is you get more data.
All in all, there isn’t much difference between them. It’s worth noting, however, that the offerings from Optus, Virgin Mobile and Telstra come with other features that may appeal.
The Optus and Virgin plans come with a modest amount of international call time, plus data-free music streaming with selected services. Meanwhile, Telstra brings unlimited calls to selected countries and a three-month subscription to Netflix, Stan or Presto.
SIM-ONLY PLANS
If you’re not convinced about the value for money on offer from these contract plans, then it’s time to start saving up your cash and searching for the best SIM-only deal you can find.
There are more than 30 service providers queuing up to offer you a great deal.
The big carriers will also have SIM-only options to choose from, but these will largely reflect the same value as their contract plans.
Again, we are setting the minimum plan features at unlimited local talk and text, plus at least 7GB of data.
Some SIM plans come on 12-month contracts, but we’re only comparing no contract postpaid or prepaid offers because we also want the flexibility of switching providers whenever we want. We are also only comparing plans that give us 4G coverage.
Here are the cheapest plans you’ll find that meet our plan demands, and what they will cost you over two years, including the initial cost of purchasing the iPhone 7 ($1079).
TPG
Contract period: 1 month
Plan name: T4G-2
Monthly or recharge cost: $34.99
Data allowance: 7GB
Cost over 24 months: $1918.76
JENEE MOBILE
Contract period: 1 month
Plan name: $35 Pennywise
Monthly or recharge cost:
$35
Data allowance: 8GB
Cost over 24 months: $1919
OVO
Contract period: Prepaid 30 days
Plan name: $34.95 Plan
Monthly or recharge cost:
$34.95
Data allowance: 8GB
Cost over 24 months: $1929.45
ALDI MOBILE
Contract period: Prepaid 30 days
Plan name: XL Value Pack
Monthly or recharge cost: $35
Data allowance: 6GB
Cost over 24 months: $1930.67
KOGAN MOBILE
Contract period: Prepaid 30 days
Plan name: Large Plan
Monthly or recharge cost: $36.90
Data allowance:
Cost over 24 months: $1976.90
LEBARA
Contract period: Prepaid 30 days
Plan name: Mega Plan
Monthly or recharge cost: $39.90
Data allowance: 7GB
Cost over 24 months: $2049.90
AMAYSIM
Contract period: Prepaid 28 days
Plan name: Unlimited 7G
Monthly or recharge cost: $39.90
Data allowance: 7GB
Cost over 24 months: $2119.25
COLES
Contract period: Prepaid 28 days
Plan name: Coles Prepaid
Monthly or recharge cost: $40
Data allowance: 7GB
Cost over 24 months: $2121.86
WOOLWORTHS MOBILE
Contract period: Prepaid 30 days
Plan name: $45 Recharge
Monthly or recharge cost: $45
Data allowance: 8GB
Cost over 24 months: $2174
SPINTEL
Contract period: 1 month
Plan name: L Plan
Monthly or recharge cost: $46
Data allowance: 8GB
Cost over 24 months: $2183
When it comes to SIM-only plans, additional features are limited. However, five of these plans come with some international call minutes, most notably the Amaysim Unlimited 7GB deal which boasts unlimited international calls to 10 selected countries.
SO, WHERE’S THE BEST DEAL?
As Canstar’s analysis indicates, there isn’t a huge difference in cost over two years, whether you go with a handset contract or a SIM-only deal, after buying the new iPhone outright.
However, six of the SIM-only plans compared end up being better value than any of the contract offers.
The cheapest of the SIM-only deals from TPG and Jeenee Mobile will cost you about $170 less than the Optus and Virgin Mobile plans over two years.
That’s a pretty good saving when you’re getting the same basic plan inclusions. It also means your monthly costs are much less once you have splashed out to buy the new phone.
Going SIM-only also gives you the advantage of switching providers whenever you want. The mobile market is hugely competitive at the moment, so it’s likely we’ll see even better value plans appear in the coming months. Being locked into a two-year plan means you’ll miss the opportunity to switch for increased value.