Aussies happy paying too much for bundled communication plans

Signing up to a bundled home communications plan makes consumers less likely to shop around for a better deal – even if they think they’re paying too much.

That’s one of the findings of a new survey from consumer research company Canstar Blue, which also found that many consumers are in the dark when it comes to the details of their bundled plans.

“Bundled communication plans for your home phone, mobile and internet can be very convenient – not least because you will only have one bill to review at the end of the month and one phone number to call if things go wrong. But with so much competition in the market now, consumers should make sure they don’t become complacent and continue to shop around for a better deal,” said Canstar Blue spokesman Simon Downes.

The Canstar Blue survey, of 1,700 Australian adults who have signed up to a bundled home communications service in the last two years, shows that 64% researched deals from several providers to find the best deal they could. But now that they are signed up, 57% said they are now less likely to shop around because of the convenience of their current plan.

“Some consumers seem happy paying more than they have to,” added Mr Downes. “Half of those we surveyed believe they are paying too much for their current product, yet only 28% said they would like to switch suppliers, and 77% claimed to be happy with their current provider.”

Canstar Blue also found that 38% of consumers didn’t know the length of the contract they had signed up to, while 32% didn’t know all the details of their plan – including cost of calls and data allowance – and 63% were unaware of the penalties and exit conditions.

Of those who would like to switch but hadn’t, many said they simply couldn’t find the time to do so, while others were worried they might actually end up paying more. However, the main reason given by consumers was that they found the process of switching too complicated.

“You might think it’s not worth switching just to save $10 a month, for example, but over a couple of years the savings can really start to add up. You could end up spending hundreds of dollars more than you have to, just because you didn’t shop around,” said Mr Downes.

Internode has received Canstar Blue’s Most Satisfied Customers Award for bundled communication plans, with five-star ratings for customer service, network performance, clarity of terms and conditions, clarity of billing information, and overall satisfaction. TPG and iiNet recorded five-star ratings for value for mone

“Consumers naturally want to get the best value for money they can, but they also want a reliable network connection and quality customer service should they encounter any problems,” added Mr Downes.

“Just 7% of survey respondents pointed to the clarity of their contract as their main driver of satisfaction, but it’s crucial consumers know exactly what they are signing up to – and for how long. Consumers should always make sure they read the small print of their contracts and don’t get carried away by headline prices."