Mobile Phone and Plan Trends Report.The Australian Phone Market Has Changed 2018 will see the trend to individually-designed phone solutions accelerate and incorporate more components – like wearable tech.

1. Mobile Phone and Plan
Trends Report
WhatPhone December 2017

2. Kantar : All Telco No ContractAnalysis The Australian Phone Market Has Changed
2018 will see the trend to individually-designed phone solutions accelerate and incorporate more components – like wearable tech.
Prepaid Contract
Plan
Device + Plan
Theory : The New Way / Internet Way – Post Digital
The individual decides and
amalgamates the
‘Components’ they want.
The New Way.
The Individual Decides and Tailors Their Own
Solution
The Old Way.
A Big Phone Company Decides What You Get: Prepaid or
Contract
SIM Only
Plan
A phone
you own

3. • Prepaid + SIM Only (Postpaid) +
PAYG is now 67% of consumer
connections and rising. Why ?
1. It is often cheaper to buy
outright and add a SIM.
2. Cheaper Chinese phones ( 8 of
the top 22 phones sold in 2017
were Chinese.)
3. There has been a movement
away from telcos as primary
sales channels for phone OEMs.
4. Device tenure is increasing.
So What
• SIM Only has overtaken phones
sold under contract.
This reduces the control tier 1 telcos
have over their customers. Now,
phone companies can’t stop you
from leaving.
Kantar : All Telco No ContractAnalysisHow We Got Here 1 of 3: SIM Only Plans Already Comprise Two Thirds of the Market
This change has taken place over the last 5 years, replacing contracts and moving power to consumers
Responses grouped.
SIM Only variants are
already two thirds of the
Australian market.
Below: What Sort Of Phone Plan Do You Have With Your Phone Company?
Source : WhatPhone Survey

4. Andy Penn : By 2020 : 30% of the mobile market
will be driven primarily by price. (May 2017)
Analysis How We Got here 2 of 3: Australian 4G Coverage
4G network parity means people finally have a choice of network.
If You’re Travelling Around Australia, What %age Of The Time Will You Have a 4G Signal?
%ageofthetime
Source : (November 2017. Open Signal 2017)
• The 4G networks offered by
each of the main networks
performs about the same and
coverage approximately the
same proportion of the
population.
So What
• It’s true to say that Telstra’s 3G
signal covers twice the land
mass of Australia as either
Optus or Vodafone. However,
for the 70% of people who live
and work in metro areas, Optus
and Vodafone are equal
network alternatives and
they’re often cheaper.

5. Andy Penn : By 2020 : 30% of the mobile market
will be driven primarily by price. (May 2017)
Analysis
How We Got Here 3 of 3: Nearly 50% Of People Are Now Buying Plans from Smaller Phone Companies
People are buying phone plans with the most data for the lowest price they can get on any network.
• Telsyte research shows that in
the first half of 2017, smaller
phone companies, or MVNOs,
made up nearly 50% of all
connections.
So What
• Smaller phone companies tend
to provide:
• More data for a lower monthly
spend.
• SIM Only / prepaid agreements
only – no contracts.
• They often use exactly the same
networks as the big phone
companies provide.
• But do not offer ‘value add’
services such as included video
content.
Source : (January 2017 – June 2017. Source :
Telsyte 2017)
Below: What Proportion of People Buy From Optus, Telstra and Vodafone vs Smaller Phone Cos.

6. Why Are People Buying Their Phone
Plans from Small Phone Companies?
WhatPhone December 2017

7. Q1. AnalysisWhy Are People Taking Plans From Small Phone Companies? (1 of 3)
Smaller phone companies tend to offer more GB per $ than alternatives.
Source : WhatPhone Research December 2017
• You can get twice as much data,
for the same monthly spend
with smaller phone companies.
• This example shows pricing
valid 13.12.17 – promotional
offers removed.
• Remember, Kogan and Lebara
both use EXACTLY the same
network as Vodafone.
So What
• Data inclusions are the most
important considerations for
most people when comparing
plans.
• Note, many bigger phone
companies offer value added
services that the smaller telcos
don’t.
Below: Data inclusions (GB) at a monthly spend (Vodafone plan = 35 Days.) level of $30

8. Q1. Analysis
Why Are People Taking Plans From Small Phone Companies? (2 of 3)
Smaller phone companies often use exactly the same networks as the big phone companies.
Source : WhatPhone
• Australia’s big phone
companies are Optus, Telstra
and Vodafone.
• Examples of smaller phone
companies include Amaysim
and Boost Mobile.
• Smaller phone companies
resell the big company
networks. You will often get
the same coverage and priority
if you go to a small phone
company, as if you went to a
large one.
So What
• You can cut your phone bill by
going to a smaller phone
company – and often get exactly
the same network.
Below: How Smaller Phone Companies Work

9. Q1. Analysis
Why Are People Taking Plans From Small Phone Companies? (3 of 3)
Customers of smaller phone companies are generally more satisfied. (See appendix for details)
SelfStatedCustomerSatisfactionScore/10
Average customer satisfaction levels with small vs big phone companies
Source :
WhatPhone
Research
December 2017
• Customers of smaller phone
companies are happier, on
average, with their service,
than customers of larger phone
companies.
So What
• The average user can improve
their level of customer
satisfaction, get more data and
even stay on the same network
by moving to a smaller phone
company.
• Note – scale adapted to
highlight difference.

10. What will happen in
2018?
WhatPhone December 2017

11. Q1. Analysis
In 2018, Phone Users Will Be HAPPIER:
Those using the Self Service App their phone company provides, tend to be happier with their service.
2018 will see a 22% increase in the number of people using these apps.
ProportionofRespondents
Q: Do you intend to install and use the self service app in 2018?
Source :
WhatPhone
Research
December 2017
There will be a 22% increase
in the number of people
using the Self Service app
their phone company
provides.
• Most phone companies offer a
free, downloadable Self Service
app which can be used to
manage your account. It tracks
your bills, data usage, and can
answer simple questions you
might have.
So What
• People should download these
free apps. As you will see on the
next slide, they will make you
happier with your service.
• From the phone company side,
there is an education gap
around the self service app.
Nearly 20% don’t know what it
is and less than 10% intend to
try it in 2018.

12. In 2018, Phone Users Will Be HEALTHIER:
There will be a 40% increase in the number of people using ‘wearable’ technology – mostly used to measure health.
ProportionofRespondents
Q: Do you intend to buy an internet connected wearable in 2018?
Source : WhatPhone Research December 2017
This represents growth of
nearly 40% in a single year.
• Wearables are showing
similar growth to
SmartPhone adoption.
• Our survey reveals that 11%
of Australians already own
an internet-connected
‘wearable’ product (for
example, an Apple Watch 3.)
• That’s set to grow 40% in
2018.
So What
• The biggest ramifications of this
trend apply to phone
companies. Individuals now
have/need multiple SIMs, often
with a single phone number, as
we saw with the Apple Watch.

13. Q1. Analysis
2018, Phone Users Will Be Treated More FAIRLY:
Australians want fairer phone plans – especially when it comes to data.
Many plan features people want already exist.
ProportionofRespondents
Q: If you could design your own phone plan, what would it contain ?
Source : WhatPhone Research December 2017
• Competition is causing phone
companies to treat their
customers more fairly.
• All of these features already
exist. (Except unlimited data.)
So What
• At this stage, it seems likely
Australia will get it’s one
remaining wish. We believe TPG
will launch a plan with
unlimited handset data in 2018.
• Compare plans on WhatPhone
to see where you can get these
‘data extras.’
People want fairer treatment of
data in their plans. All of these
features are provided by at least
one smaller phone company.

14. In 2018, Phone Users Will Tie Together More TAILORED solutions:
2018 will continue the biggest recent trend in phones. Most of those who intend to buy a phone in 2018 will buy it outright
and add a SIM themselves.
ProportionofRespondents
Q: Where will you get your new phone in 2018 ?
Source :
WhatPhone
Research
December 2017
• Buying a phone outright, frees
people from being tied into a
contract with their phone
company. It allows them to
pick a plan tailored to their
needs.
• Contracts still play a role for
those wishing to avoid the
upfront cost of a device.
So What
• People on SIM Only plans are
free to move plans and even
networks when better deals,
with more data become
available.
• They can experiment with
smaller phone companies and
benefit from their better pricing.
Buy new,
outright
Lease it
from the
phone
company.
Get it under
contract
Get it
second
hand.
I won’t be
getting one.
Another
way – e.g.
hand me
down.
The most common way
people intend to buy their
phone in 2018 is outright.

15. In 2018, Internet Users Will Be more MOBILE:
Mobile Broadband services really took off in 2017.
15% of Australians already have one with the market set to grow substantially in 2018.
ProportionofRespondents
Q: Would you consider buying a phone and plan from Amazon ?
Source : WhatPhone Research December 2017
• Mobile Broadband is cheaper,
faster and perceived to be
more reliable than fixed
connections, particularly the
NBN.
• Mobile broadband sales have
dramatically increased in 2017
with sales of mobile broadband
bundles 30GB and above seeing
the fastest uptake.
So What
• 2018 will be a pivotal year for
the NBN. Mobile broadband
threatens their entire
investment.
• For users, Mobile Broadband
services meet needs that fixed
broadband does not –
entertaining the kids with You
Tube on long journeys, helping
students and business people
work wherever they want to.
This represents growth of
Mobile Broadband users
nearly 45% in a single year.

16. Kantar : All Telco No ContractAnalysisSumming Up: 2018 will see more tailoring of wireless tech by increasingly smart consumers.
The New Way Continues in 2018
The Individual Decides and Tailors Their Own Solution
In this example, someone has:
• Bought their phone outright
from Mobileciti.
• They’ve picked up an Apple
Watch from Amazon.
• Both are connected to the
cellular-connected internet
with Kogan Mobile.
• They’ve bought a Mobile
Broadband dongle and plan
from OVO.
• These services are all
managed through free self
service apps.

17. Appendix

18. Customer Satisfaction is Generally Higher in Those Who Use their Phone
Company’s Self Service App
ProportionofRespondents
Source : WhatPhone Research December 2017
0%
5%
10%
15%
20%
25%
1 2 3 4 5 6 7 8 9 10
Yes No
Customer Satisfaction of those who do and do not use their Phone Company’s Self Service App
A higher proportion of
users answering ‘yes’ I use
the Self Service app scored
their provider 7/10 or
higher on customer
satisfaction.
A higher
proportion of
users answering
‘No’ I don’t use
the Self Service
app scored their
provider 6/10 or
lower on
customer
satisfaction.
• Analysing the split of customer
satisfaction levels between
those who do use their phone
company’s Self Service App.,
and those who do not, shows
how significantly this single tool
impacts customer satisfaction.
So What
• Download and use the phone
company’s self service app. Yes = Yes, I do use the phone company’s free self service app.
No = No, I do not use the phone company’s free self service app.

19. On Average, People Are Happier With Their Service if They are With a Small
Phone Company
ProportionofRespondents
Average customer satisfaction levels with small vs big phone companies
Source: WhatPhone Research December 2017
• Examining the detail of big
company vs small company
customer satisfaction levels in
our survey, reveals that, on
average, customers of small
phone companies are happier
than customers of big phone
companies. Vodafone is a
notable exception.
So What
• Users should consider signing up
with a small phone company.
Not only will they feel better
about the service they will get,
as we’ve seen, but they are
likely to get more data for their
money as well.

20. 2018 Will be More EXPENSIVE (for some.)
Only 7% of Australians are sure they want to change their plan in 2018. Nearly 40% are unsure if they’ll change.
ProportionofRespondents
Q: Will you change phone plans in 2018 ?
Source :
WhatPhone
Research
December 2017
• Unfortunately, only 7% of users
indicate that they are going to
change their phone plan.
• More than half of the people
we studied are happy where
they are.
So What
• The key trend to bear in mind is
that, on average, people’s data
usage is rising at 70% per year
(Source, the ACCC.) Staying on
the same plan is likely to result
in rising phone bills.
Unfortunately, only 7% of
people are planning on
changing their phone plan in
2018.

21. 2018 Will be More FLEXIBLE :
Amazon will shake the Australian phone market up in 2018. Nearly 40% of people would consider buying their phone and plan
from the company.
ProportionofRespondents
Q: Would you consider buying a phone and plan from Amazon?
Source : WhatPhone Research December 2017
• It used to be the case that
Amazon are just one example
of the growing range of options
Australians have when it comes
to buying a phone and plan.
So What
• Amazon’s arrival underlines the
key trend of 2017. People now
buy their own phone, outright
and add a SIM from whichever
provider suits them, tailoring
what they get to be just right for
their needs.
• Amazon is not the only place
people are buying their phones
and plans. JBHi Fi, Australia post
and a host of other high street
retailers offer the same facilities.
• The key point is that people are
NOT buying their phone under
contract from the phone
companies any more.
Nearly 40% of Australians
would buy a phone / plan
from Amazon – rather than
their phone company.