Woolworths Rewards Mobile customers are being kicked off a cheap long-term plan. (Source: Getty)
Woolworths has quietly ended its most affordable prepaid mobile phone plans, leaving customers to face a 40 per cent hike in their phone bill. The supermarket giant said it has offered affected customers an “exclusive” plan to soften the blow as it looks to create more consistency across its mobile plans.
About a third of Australian mobile customers opt for a prepaid plan. In fact, that number has been on the rise according to a recent report by the Australian Communications and Media Authority (ACMA) as cost of living pressures drive budget conscious shoppers to switch to prepaid options and lower-cost mobile virtual network operators (MVNOs) like Woolworths and Aldi Mobile.
But the cheapest plans are disappearing.
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Woolworths has moved to end its long expiry 365 day plan that cost customers just $170 for the year.
Those currently on the plan received an email telling them they would need to switch to another plan in the weeks ahead, and offering them an exclusive deal to move onto a monthly $20 program. The total cost of the alternative plan would mean a yearly spend of $240, a $70 increase.
Some customers who received the email complained online about the more than 40 per cent increase they faced as they looked for alternative options.
In a statement to Yahoo Finance, a spokesperson for Woolworths, which relies on the Telstra network for its mobile plans, said it wanted to create better consistency across its mobile offerings.
“Everyday Mobile is focused on offering customers a flexible range of plans to suit different needs and budgets.
“Just like other providers, we periodically refresh our plan range to offer greater consistency across plans.
“This recent change offers existing customers a special alternative plan designed to minimise any cost impacts. Customers are also encouraged to consider our other plans, which all offer simple pricing, strong data inclusions and Everyday Rewards benefits.”
RELATED: 5 Tips for Aussie parents to cut costs on mobile phone bills
(Source: Yahoo Finance)
There are a few things to consider when looking at the best prepaid plans on the market, including data allowance, the underlying network, the price structure of the plans and any lock-ins.
It might sounds surprising, but a 2023 report by the ACCC found that the typical Aussie still only uses 13GB of data per month. Given how easy it is to seamlessly switch to a Wi-Fi network at home, at work or even in public, it is quite easy to keep data use low.