Opinion: iPhone 7 customers to get biggest data plans ever offered
While mobile operators have gradually increased iPhone pricing over time, data provision has sky-rocketed
Joseph Hanlon, Publisher at WhistleOut, Australia’s telecommunications comparison site, shares his views on why the packages offered by the leading Aussie telcos for the new iPhone 7 provide some of the best ever value for new iPhone customers:
“The iPhone 7 is the best iPhone so far but based on the outright price of the phone you might think that new iPhone plans would be prohibitively expensive. Interestingly, plan prices have remained fairly consistent since the iPhone was first introduced, while the inclusions have skyrocketed,” said Hanlon.
“We’ve reviewed the plans offered by Optus, Telstra and Vodafone since the launch of the original iPhone 3G 8GB in 2008, and one trend in particular stands out – consumers can now get a whole lot more data for their dollar than ever before.”
The WhistleOut team analysed the different components that have gone into the total cost of 24-month iPhone contracts over the 2008-2016 period, including the cost of the plan, any handset repayments and the data provided with that plan.
“We focused on the entry level handsets, particularly analysing the entry-level contracts and the plans that have represented the best value for consumers over the years, which have consistently been those around the $80 band – what we would described at medium-sized plans,” said Hanlon.
Since the introduction of the iPhone 3G in 2008, the average 24-month cost of these medium-sized plans has increased 14.8% from $1,887 to $2,168 for 2016’s new iPhone 7. Over the same period, average data inclusions have jumped from 318MB/month to 6GB/month – an increase of 1,786%. See the charts below for details:
What does this mean for consumers?
“The difference in total cost between an entry level plan and one with better data allowances has reduced in recent years. At the same time, the $80 contracts have consistently offered more ‘data-per-dollar’ for iPhone customers, with there being a marked increase in data provision more recently. For example, on average today’s iPhone 7 on an $80 plan will give consumers 5GB more data per month than the entry level plan, for only $14 more,” remarked Hanlon.
A breakdown of the ‘Data vs Dollars’ equation (comparing entry level with medium-sized plans) can be seen in the chart below:
“Even without taking inflation into consideration, the plans currently offered by Australia’s three biggest carriers provide consumers with more ‘data-per-dollar’. The cost of the cheapest plans is steadily increasing, making medium-sized options even more attractive.
“The extra 5GB you get choosing a medium-sized plan may seem excessive to some, but Spotify subscribers or anyone who watches YouTube on the bus knows that 5GB is essential. This equates to about 26 hours of music and video streaming, or just enough to cover your daily commute each month. Add in general web browsing and social media, and iPhone shoppers should be giving the more generous plans serious consideration.
“It’s encouraging to see Australia’s phone operators doing the right thing by consumers, acknowledging the need to provide affordable data and enabling people to get the most out of their devices. This trend has been particularly evident in more recent years, where the major Australian phone operators have really stepped up the amount of data provided in their $80 iPhone plans; tripling from 2GB to 6GB since the introduction of the iPhone 5S in September 2013.”
Over the 2008-2016 period, Optus has typically offered the most data at iPhone launch on medium-sized contracts, followed by Vodafone and Telstra.
“Every iteration of the iPhone has been an improvement on the previous model, and iPhone 7 is no exception. We encourage consumers interested in getting a new phone to check the market, because in terms of ‘data-per-dollar’ there has never been a better time for a new iPhone plan.”
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