AUSTRALIANS HUNT FOR BETTER INTERNET DEALS AMID RISING COST OF LIVING

Sydney, Australia - 12 November 2024 - New research reveals a significant opportunity for Australians to save on internet costs by reassessing their need for ultra-fast speeds. Despite one-third (37%) of consumers actively searching for a better deal in the past six months, 70% of internet-decision makers said they would never choose a slower speed - missing a key opportunity to lower their bills by switching from high-speed plans they may not fully utilise.

The SpinTel study of over 1,000 Australians including more than 830 internet decision-makers, revealed that more than one-third of users don't understand Mbps, or internet speed. As a result, many struggle to identify the best value and often end up with plans that don't suit their actual needs. 

Liam Bal, CEO of SpinTel said there is a perception among consumers that higher speed equals a better online experience and this misunderstanding is costing many Aussies hundreds of dollars a year.

"Better transparency around how much internet speed is actually required for everyday activities could help customers save money and make more informed choices," said Bal. "Most consumers don't realise that a slower speed, at a reduced cost, can easily meet their needs while saving money.

"For example, a household with 1-2 people streaming, video conferencing and browsing would have a great experience and ample speed with a 50Mbps plan, yet 70 percent of consumers think the faster the better, and pay up to $50 per month extra for speed they don't require."

Aussies on the hunt for better deals

The research found 31% of internet decision makers are willing to switch providers for even a minor price reduction. A further 22% are thinking about it and only 41% have paid the bill without considering a change in providers.

Most revealing is that only 3% of Aussies surveyed don't know what they're paying for their telco services, showing Australians are keeping a close eye on household expenditure.

Hindering contract obligations

Adding to the challenge are contract obligations: more than 20% of Australian internet decision-makers are dissatisfied with their provider, and 64% of those would switch for even a small price reduction if they could exit their contract.

Over half (54%) of unhappy internet decision-makers feel unable to switch due to contract restrictions but would move to another provider if they weren't locked in. This perceived lock-in is preventing Australians from exploring better deals.

Security concerns remain top of mind 

Australians are also concerned about their online security. The research shows that 28% of decision-makers worry about losing their personal data and 49% are concerned about being hacked. These anxieties are complicating the decision-making process around switching providers or bundling services, with many customers uncertain about security measures in place.

Internet usage patterns

The study also offered insights into Australians' online activities. Almost all internet decision-makers use the internet to browse (94%), shop online (88%), or engage with social media (83%). However, activities like Zoom calls (41%) and gaming (47%)—which require specific bandwidth—show where better consumer knowledge could lead to more tailored, cost-effective plans.

Missed opportunities in bundling

Another way consumers' can save money is through bundling their telco services, but 40% of Australians don't bundle due to confusion or distrust, missing out on potential savings. Many are hesitant to "put all their eggs in one basket" or fear losing control over individual services, holding them back from considering this cost-saving option.

Mr Bal added that internet plans should be 100 percent flexible with no lock-in contracts to enable people to move between plans as their household needs change. 

"Internet providers have a clear opportunity to alleviate confusion and build trust with consumers. Providing better transparency and education on what speeds are actually needed for daily activities can help customers save money and feel more confident in their choices," said Bal.

For more information or interview with Liam Bal: Karen Keech karen@establishedpr.com.au 0411 052 408

About SpinTel: One of the largest independent-ownedISPs in Australia, established in 1996 offering both residential and business telecommunication services. SpinTel's mobile, mobile broadband and wireless broadband plans are powered by the Optus Mobile Network. SpinTel is awarded as Australia's best provider across Mobile, NBN, Internet, and Broadband by WhistleOut, Product Review, Canstar Blue, Finder, and Money Magazine. SpinTel is one of the most popular Australian ISP's on ProductReview with a rating of 4.4 from over 10,986 reviews.