Here we explain the words used in mobile plans to help you
understand your phone contract and save money.
Plans and contracts
A 'mobile phone plan' is what a mobile service provider will
provide you with, how the provider will charge you for using your
phone and how you will pay.
Within each plan, there are a range of services that will be
charged in different ways. Understanding how your phone will be
charged and how costs can be added to your bill will help you
choose the best plan.
Once you decide on a plan that suits you, you sign a 'contract'.
This is a legal agreement saying that you accept everything that's
described in the plan.
If a plan includes a 'free' mobile phone handset, you'll still
end up paying for it one way or another. The cost is usually
included in the plan's monthly fee.
'Included value' means everything you get for your regular
monthly payment. 'Excluded value' is anything you have to pay extra
for. For example, 1300 and 1800 numbers are part of the 'included
value' in some plans but not in others.
The provider should be able to show you the following costs in
- Making a 2 minute standard voice call to another phone in
Australia (including flag fall)
- Sending a standard mobile SMS (text) to another phone in
- Using 1 MB (megabyte) of data when you are in
Allowance or limit
An 'allowance' is one part of your included value. For example,
if you choose a plan that costs $50 a month, it may give you a $300
'allowance' for calls and texts each month. Your allowance is
sometimes called your 'limit'.
Ask your provider what happens when you reach your limit -
that's really important as you could be charged a lot more.
Some plans allow you to go over your monthly allowance or limit.
In these cases, you will be charged extra ― sometimes a lot extra!
With other plans, you will be automatically prevented from using
more than your limit in a month.
Before 1 September 2012, service providers were allowed to use
the word 'cap' to describe the limit in both cases. This was
confusing for customers.
Mobile plans introduced after 1 September 2012 are only
allowed to use the word 'cap' to mean a limit that prevents you
from going over.
But be careful! Remember that plans introduced before
1 September 2012 may still be using the word 'cap' for a limit
that you can go over. You should read the plan carefully.
'Data' includes internet use, emails, live video chat, app
updates, downloads and sending pictures in a text message
Data does not include texting (SMS), voice calls, listening to
voice messages or taking photos.
Here are a few examples of data use:
- Watching a 1 minute video online (about 5 MB (Megabytes))
- Downloading a TV program (about 350 MB)
- A 1 hour Skype video chat (about 170 MB)
Wi-fi versus 3G or 4G
For data, it's often cheaper to use your mobile phone with wi-fi than accessing the internet on your
mobile network (using mobile broadband such as 3G or 4G).
That's because data charges using a mobile network are usually
higher than for other forms of internet connection such as in your
'Pre-paid' means you will use a mobile phone that you already
own and pay in advance for using your phone on a mobile service
provider's network - that is, you buy credit. When your credit is
all used up, you can receive calls but you can't make calls. You
have to buy more credit to make calls with your phone. Sometimes
you lose your remaining credit if you don't use it all within a
certain time period - for example 30 days.
Last updated: 05 Jan 2015