Phone Plans

12 hours a day Michael Wilkins is in cyberspace, he works in a virtual office and relies on data downloads to make a dollar. For 4 years he's been with Telstra. On the 4G network, on a 3-Gig plan with another 3Gig backup. Michael moved to one of the new players in the mobile data market, Yatango. A provider that allows him to tailor make his own mobile phone package.

Andy Taylor is the brains behind Yatango; they use the Optus 4G and 3G networks. They don't run call centres and they use social media to drum up business, slashing their overheads.

12-million Australians are now using smart phones, with almost 8-million using a mobile device like their phone or tablet to surf the net.

Until now, users have been signed onto locked in contracts for a specified data amount then charged more if they go over the limit.

New players like Yatango and Amaysim are changing the game.

Teresa Corbin from the Australian communications consumer action network has welcomed the competition.

"Will the big players be forced to cut their prices?"

"Well you would hope that more choice will bring the prices down but people need to weigh up all the options to make sure they're on a faster network if they want, so they're not getting 3G when they want 4G , that they're also not locked into a contract so they can shop around and change when they're not happy."

Telco's are also being urged to allow customers to "bank" data download they don't use but still pay for. "One of the frustrations that people do have is that they can't carry over from month to month so if they don't use all their data then they lose it. They pay for it whether they use it or not. So it would be much better to have flexibility and only pay for what you are actually using." and with more and more people switching to mobile devices to surf the net, watch television and communicate with video. More pressure will be brought on all the Telco's to keep lowering their prices.