Pay for your phone a year upfront? What 365-day mobile plans really cost

Personal finance

Annual prepaid mobile plans, also called 365-day or long-expiry plans, ask you to pay for the full year at once instead of month to month. According to WhistleOut’s Alex Choros, prices run from about $150 to $400 a year.

The cheapest start around $150, or $12.50 a month, slightly under the cheapest comparable monthly options. Data is for the whole year, so 140GB works out at just over 11GB a month, and bigger plans reach 500GB.

Within the same provider, Mr Choros says annual plans should be cheaper “99% of the time”. Across different networks that’s not guaranteed: an annual plan on one network can still lose to a monthly plan on another. He pointed to Amaysim, OnePass and Kogan for strong data per dollar, and Boost Mobile for people wanting the full Telstra network at a lower price.

They suit people with steady data use, who can afford the upfront cost and already own their phone, since the plans are SIM-only. Heavy users risk running out before the year ends.

What it means for your money

Divide the annual price by 12 and compare it with what you pay now, then check your real monthly data use. If you rarely go over 10GB and own your handset, a yearly plan could trim your bills.

Source: Money Magazine

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