So you are one of the many thousands of Australians who have purchased a shiny new smart phone from one of the Telco providers on either a 12, 24 or 36 Month payment Plan.

Its not a bad option if you cannot afford the upfront costs, want the latest and greatest phone each year and want to pay it off month by month but….

Have you stopped and considered the cost of this purchase over the life of the Plan?

We have broken down the costs for you and what savings could be achieved if the handset could be purchased outright and NOT on a month to month Plan

The example phone that we will use for this Case Study is the..

Apple iPhone 13 Pro Max with 128Gig Internal Storage on a 20Gb per Month Data Plan

I have broken down the costs by Years if you purchased the phone on a 20 Gb Data Plan with a Telco over 36 months, 24 Months and 12 Months

Over 36 Months   $3456 or $96 per month

Over 24 Months   $2928 or $122 per month

Over 12 Months   $2352 or $196 per month


But what happens if you pay for the Handset outright cost up front ( not on a plan ) and then choose your own 20 Gb per month Data Plan?

Over 36 Months   $2538 or $70 per month

Over 24 Months   $2308 or $96 per month

Over 12 Months   $2078 or $173 per month

Rembering….. Its the

Same Phone

Same Data allowance

Only differences being that you have paid for the Handset up front. The cost savings are huge as you can see.

The longer you stay on a Post Paid Telco Plan, the more money you will pay

So if you are currently paying a phone off with a Telco on a Plan, consider whether you can break the contract by paying off the handset costs and purchasing a Data Plan that suits

If you are about to purchase a new phone, again, think about paying for the handset up front.

It gives you enormous control as you are not “locked in” to a long term contract with your Telco and has the added sweetener of being more cost effective regardless of whether you choose a 12, 24 or 36 Month term.

You could save almost 27% or over $900 depending on which option you decide upon.

And who doesn’t want to save a dollar!





Patrick Larobina