Optus this week launched a new data pooling offer, whereby single users or families can combine all eligible mobile and mobile broadband plans onto a single bill.
Telstra is set to increase its fixed line pricing for both Business and Residential customers from October of this year.
The Australian Communications and Media Authority (ACMA) has released new research highlighting the increasing tendency for Australians rely upon mobile rather than fixed telecommunications.
We here at Dog and Bone have felt for some time that Optus has a clear identity issue.
This is perhaps ironic for a company that strives so very hard to push its particular brand, from the venerable ‘Yes’ campaign that won’t stay dead, to the unfathomable wild animal campaigns of last decade, to that lethally cute little lemon drop guy they have now. Perhaps it’s not ironic, and the rebranding perfect illustrates the issue.
Bill shock - the shock of receiving a massive and unexpected bill - is becoming increasingly common with mobiles phones, leading in many cases to severe financial hardship and even bankruptcy.
Here we look at some ways you can avoid big blowouts. Various financial counselling services have reported that mobile phone bills are the number one cause of people - especially young people - seeking bankruptcy guidance.
It seems that many people simply don’t understand how their mobile plans work, what their phones can do, and how much certain services cost. Ignorance is no longer bliss, if indeed it ever was. It’s also no excuse for phone companies, who expect to be paid no matter how bewildered you might feel.
So how can bill-shock be avoided? The two most vital things you can do are to know the products, and to be honest with yourself. Here are some general tips:
PREPAID IS ALWAYS THE SAFEST
With pre-pay, what you pay for is what you get, making it very easy to control your expenditure each month. This is an excellent option for people who aren’t sure where they’ll be in the future, and those with a bad credit rating. Even if your prepay credit is used up, you can still call emergency numbers.
CHOOSE YOUR CAP CAREFULLY
If you’re on a Cap plan, make sure it is big enough, and be careful not to exceed your limit. Cap plans are great value so long as you stay within your cap. However, call rates on Cap plans are truly terrible, and costs can really add up if you use up your available credit.
BE CAREFUL WITH SMS
SMS may seem cheap - only 20- 25c per text - but they can really add up. Many young people send hundreds of SMS per month, significantly adding to monthly costs. Premium SMS services - including reality show voting - generally cost at least twice the normal SMS rate, and usually aren’t included under cap limits.
UNDERSTAND YOUR PLAN
Different carriers calculate things in different ways, and are not above deliberately confusing customers with complicated terminology and details, as various cases before the ACCC attest. For a fun exercise, try a direct comparison between an Optus and a 3 Mobile bill. There is a huge proliferation of choice in the mobile phone market, but choice is only a good thing when you understand all the options. Otherwise, it becomes disempowering, leading to confusion, frustration and potential hardship.
OWN YOUR PHONE OUTRIGHT
You can buy a functional handset for under $60. Owning a mobile outright is always safer than paying one off on a 24-month contract. Depending on the carrier, the cost of paying out the handset if you break your contract might be bigger than you realise.
BE CAREFUL WITH YOUR HANDSET FEATURES
Phone companies aim to make spending money effortless. They provide handsets that can access expensive premium features very easily, sometimes by accident. These costs add up very quickly.
TAKE CARE WITH MOBILE DATA
Browsing the internet costs a lot more than making phone calls. Most Australian mobile data plans are smaller than you might realise, and it is very easy to exceed them, leading to very large bills. Additionally, if you have a smartphone, make sure you keep track of what your handset is doing in the background. Various data options are often defaulted to ‘on’.
BE VERY REALISTIC ABOUT YOUR NEEDS
Be honest about why you actually need a mobile. Basic calling functionality is generally the most anyone would ever truly need a phone for. Anything beyond that is a luxury, and luxuries are rarely free.
Our advice? If in any doubt, buy a handset outright, and go prepaid. You can always go on a plan later, once you better understand your needs usages patterns and choices.
Last Thursday, Dog and Bone held its annual Strategic Planning Day, facilitated by the Groupwork Institute of Australia.
As ever, it was a fantastic day, filled with laughter, superb food and a forensic examination of how Dog and Bone does business, and how we’d like to change and grow. There was also a trampoline.
This year many of us found the day particularly useful given a tighter focus on more practical, imminently-achievable outcomes. We were able to enunciate clearly what we would like to achieve in the near to mid-term, and were encouraged to lay out the practical steps we need to take in order to get there.
This applied equally to outlining new products and services, ways of improving the way we manage internal technical issues, new ways of engaging with our customers online or in person, and, vitally, new initiatives whereby Dog and Bone can allocate resource to helping other, whether at a local or even international level.
All of us left genuinely optimistic that we’ll be able to achieve everything we set out to. So look for some new stuff soon (starting with a new website hopefully in the coming weeks).
Given recent expansion, it also provided an excellent opportunity for new and existing staff to get to know each other. Indeed, for two of the new staff members the Planning Day fell before their first official work day, meaning they were meeting plenty of us for the very first time.
Team-building continued well into the night, in a far less formal way. We learned that Caitie and Angus quite like washing up first thing in the morning, which seemed like a dangerous admission to make. The dispute over who had the most regretted tattoo had an unlikely winner. Woodfired pizzas seemed to go on arriving for hours. AiLin was the first to bed. James and Angus emphatically were not.
The Australian mobile telecommunications marketplace has matured to a point at which the stream of new customers has slowed to a relative trickle. Our telcos are increasingly obliged to poach customers from each other, with the result that they are being forced properly to compete.
This has seen the major players introducing new products, new services and otherwise trying to increase the value of their mobile offerings. Telstra this month has introduced new measures to combat bill-shock, whilst also reducing the price on many of its data packs. Optus has done the same. Virgin Mobile has introduced monthly data rollover.
It seems like a great time to be a mobile customer in this country. But how do we compare to other, similar countries such as the United States or the United Kingdom?
Virgin Mobile recently released a data rollover provision whereby an unused data from a particular month will become available for use in the following month (but no later than that).
Seems pretty good, but …
T-mobile in the USA offers a similar service – called Data Stash – that stores unused data up for 12 months. (Other US telcos such as AT&T and Sprint offer a month-to-month service.)
Vodafone Australia are great believers in giving you bonus data when you sign up, usually as part of ‘limited’ offers (though there’s almost always one of these one). For example, right now if you sign up to an $80 per month plan Vodafone will throw in an additional 4G of LTE data, on top of the 4Gb already included in the plan.
Seems pretty good, but…
Sticking with T-Mobile in the USA, they offer a 10Gb upfront buffer on their cell phone plans, which you have to get through before you even touch your included monthly allowance. This 10Gb is valid for 12 months after you sign up.
Vodafone UK, meanwhile offers three months of unlimited data on new SIM-only plans (one of which includes an attractive 6Gb for £27, with unlimited talk and text).
Automatic Data Packs
Both Telstra and Optus now automatically add a $10 1Gb data pack to your account as soon as you exceed your monthly data limit, ensuring that you won’t be slugged with exorbitant pay-as-you-go rates.
Seems pretty good, but…
A few telcos overseas actually offer unlimited data. For example, Three Mobile in the UK offers SIM-only, month-to-month plans starting at £17 (A$32.60) that includes unlimited data(capped at 50Mbps, and subject to their TrafficSense limitations). It is also important to point out that many overseas carriers do not allowing smartphone tethering.
Vodafone Australia has sought to position itself as the best telco for those travelling overseas. For $5 per day you can access your domestic phone plan in 47 countries around the world.
Seems pretty good, but…
This is a bit of a confusing area, since so many international carriers have different ways of charging for roaming. In the scheme of things, Vodafone’s $5 per day is actually competitive.
For example, Verizon in the USA offers 100Mb of data for $25US per month, and 100 minutes or voice and 100 SMS for an extra $15 above that. Sprint, meanwhile, is set to introduce anInternational Value Roaming plan, which allows for unlimited roaming in 15 counties, but only at 2G speeds. T-mobile already offers a similar service which applies in over 120 countries. But roaming on 4G is still exorbitant.
Three Mobile in the UK, meanwhile, allows up to 25Gb of data usage overseas via its Feel At Home provisions, but it’s astonishingly complicated. There’s also a £5 per day Eurozone pass (and apparently bad things happen if the two are combined). Vodafone UK offers the same service as our Vodafone, but for £3 per day.
Issues of geography and distance will almost always mean that mobile plans in this country will be higher, because the infrastructure to provide them costs so much more to implement. Overall, Australian telcos are making steps in the right direction.
But we should not pretend that we’re getting world-beating value. There’s a good reason why overseas visitors are invariably shocked when they learn how much our telecommunications services cost.
Here at Dog and Bone, it feels as though we’ve been writing about the scourge of Bill Shock forever. At last there is hope we won’t have to any more.
Telstra has announced new measures that it feels confident will eradicate Bill Shock, thus giving you 'unmatched confidence'. It is doing this by automatically activating a small data pack the moment you exceed your monthly data limit. You may recognise that as basically identical to the measure Optus introduced a couple of years ago.
Bill Shock, for those who’re unfamiliar with the term, is that wondrous phenomenon that occurs when you open your phone bill, only to discover that the total on the bill is many orders of magnitude larger than you were anticipating. This blowout should not be confused with a slight overcharge (this is Bill Startlement) or the discovery upon reading your credit card statement that your partner subscribes to a certain kind of website (this is admissible evidence).
Bill Shock is most commonly caused by excess mobile data usage or by using mobile data whilst abroad. Telstra’s new measure will address the first of these issues.
Now whenever you use up all of your allotted data, a 1Gb data pack is automatically assigned to your account for that month. Telstra has also reduced the price of these data packs from $15 down to $10. Thus the most you’re likely to pay for going over your data limit is $10.
$10 is also the least you’ll pay, which is an important point to bear in mind. For while Telstra’s pay-as-you-go (PAYG) rates were among the highest in the developed world, they have actually fallen in recent years. The rate is currently $0.03 per MB.
The upshot is that there are plenty of cases where it is cheaper to stay on PAYG and not get a data pack. Simply put, if you exceed your data limit by less than 333Mb, it remains cheaper to stay on PAYG.
Of course, it won’t be possible to make that decision on the spot. You have to nominate ahead of time whether you want your account flagged for the automatic data pack. You will be able to opt-in once the system goes live on May 12.
When Optus introduced their automatic data pack provision in 2013, their CEO Kevin Russell conceded that Australian telcos were ‘increasingly reliant on revenues from breakage fees’. In other words, telcos were banking on customers suffering bill shock, and (one must assume) structuring their plans in order to ensure this outcome. Russell’s admission wasn’t shocking because it was new information – merely by the fact that he made it. Naturally it was timed to imply that Optus’ new largesse resulted from them being no longer able to bear the crushing guilt of fleecing their customers for so long.
Telstra has apparently been able to cope with the guilt for a while longer; apparently with greater market-share comes more reasons to ignore those bad feelings.
Commendably, the last few years have seen a number of measures adopted by Australian telcos to reduce Bill Shock – admittedly at the behest of the regulator – including greater plan transparency, improved data usage tools, lower excess charge rates, and increased data allowances. These combined factors mean that customer misery contributes less to revenue than it once did. Being nice will now cost the telcos less.
But just how nice are they? How much will this putative kindness cost them? There are several factors to consider.
Firstly, those automatic data packs aren’t free. Telstra’s 1Gb pack costs $10, and as mentioned there are plenty of instances where this will cost the customer more than just staying on the PAYG rates. Sadly, we have no access to internal telco billing data, especially for residential customers. On the other hand, Dog and Bone's extensive data shows that business clients rarely suffer huge blowouts. It tends to be a few hundred megabytes, if that.
By linking the new provision with increased 'confidence' Telstra's intention is clearly to promote more carefree use of mobile data. What's the worst that could happen? Ten bucks? Pah! More surfing, less hassle! Perhaps we're just cynical.
Automatic data packs certainly ensure that Bill Shock is addressed. What would have been an enormous and potentially crippling phone bill – and government data suggests that this is a strong cause of personal bankruptcy – will now be reduced to a more manageable total composed of $10 increments. (One wonders whether it will have a greater impact than Virgin Mobile’s recent introduction of a monthly data rollover.)
It will address Bill Shock, but it won’t do much for Bill Startlement. In fact, it might even increase it a little.
Story of the week is the Federal Government’s new mandatory data retention legislation, which stipulates that the communications metadata of all Australian citizens must be retained for no less than two years, and will be accessible by government agencies without a warrant.
Even as I write the legislation is continuing its inexorable journey through the upper and lower houses of the Australian parliament, much as food makes its way through the upper and lower intestines of a large mammal. As with digestion, nothing has been particularly improved by the passage of this legislation. The federal opposition insist they conducted a robust party room debate on the subject, whereby standing members were encouraged to voice their concerns and air their reservations about the new laws.
What emerged however were a series of all but pointless amendments precisely calibrated to give the impression that Labor wasn’t merely rubber-stamping another government policy, without actually addressing any of the fundamental issues.
The government took one look at the proposed amendments, shrugged, and waved them through. The more strenuous amendments proposed by independent MPs and senators, as well as the Greens, were voted down.
There's nothing to worry about though: it's just metadata. It's not like they're reading your emails or listening to your phone calls. What can you tell from metadata? Well, lots, actually.
The fun doesn't stop here, though. Next week will see the introduction of new site-blocking legislation, which is primarily designed to crack down on internet piracy.
Given that Labor itself pursued even more sweeping and arbitrary laws when it was in office - Communications Minister Malcolm Turnbull is adamant that this new regime is not an internet filter - you can expect that this legislation will also enjoy similarly spirited 'opposition'.
It is either revealing or coincidental that this legislation is being introduced now, just as Netflix launches in Australia. Along with other new Video-On-Demand (VOD) services such as Stan and Presto, it is anticipated that Netflix may lead to a dramatic long-term drop in piracy rates.
Anyway, while our politicians spend time, resources and energy passing laws that are of debatable use, yet provide easy political capital, there are other important measures that are at risk of falling by the wayside. The federal government has finally released the terms of reference (TOR) for the cost-benefit analysis (CBA) for the creation of a national emergency services mobile network. Sounds complicated. Maybe that's why it has taken so long.
The need for a national emergency mobile network has existed for years. When completed, it will provide reserved mobile spectrum for Australian emergency services. Last March the Communications department announced that the CBA was imminent. November 2014 saw the announcement that Productivity Commission would look at the costs (and benefits!) of allocating spectrum to this service.
Of course, the issue predates those time-frames, and even the current government. The Police Federation of Australia in fact made a submission to the previous government, requesting 20MHz in the 700MHz spectrum. This request was rejected, since that spectrum was being auctioned off, and just giving it away for public safety was a waste of money.
Anyway, today the terms of reference were finally released. The final report is due in nine months.
Do Not Call
Some good news from parliament! As reported on ACCAN's website, inclusion on the National Do Not Call Register is now indefinite.
Whereas previous registration only lasted eight years, now the registration is permanent. We encourage anyone interested in not being pestered by telemarketers to register immediately. Bear in mind, however, that you can still be contacted by charities, political parties (sadly) and research companies (seriously?).
Registration is free, and can be done here.
So what's it like to work at Dog and Bone?
Information about what we do at Dog and Bone is not hard to come by. Simply searching through this website, or following our Twitter feed, will give you a pretty good idea of what we do and how we help people.
What we’ve never really talked about is our character as a company, and how that translates into our workplace. After all, we here genuinely think Dog and Bone is a pretty tremendous place to work (and not just because there are faceless men in dark suits standing behind our chairs commanding us to say that). It’d be a shame if that wasn’t communicated.
We have a great office in a converted art deco bank on High Street in Northcote. It turns out a bank safe makes for a very secure server room (especially that one time when the key broke). We moved here in 2008, having outgrown smaller premises in North Fitzroy (I admit I miss the post-work kicks of the footy in Edinburgh Gardens).
In that time have seen High Street undergo enormous changes. If it was great before, it’s positively vibrant now. When we relocated there were only a few decent cafes and restaurants, even by a generous estimate. Now we’re spoiled for choice. On the other hand, the great stuff that was already here hasn’t gone anywhere. Institutions like the Wesley Anne and the Northcote Social Club have barely changed at all.
Within the office, there are the standard pre-requisites for any Google-wannabe: Coffee machine – check; standing desks – check; moat stocked with live piranhas – pending. Creative lighting solutions – most definitely (our lighting is supplied by Vintage LED, with whom we have a close relationship). There’s a fish tank whose residents we strive valiantly to keep alive; sadly the mortality rate in that tank is about the same as that of a WW2 bomber crew.
The table tennis (TT) table was acquired on a whim soon after moving to Northcote, and has been a fixture of the office ever since. The table was once a feature of the main office – visiting clients and suppliers were always encouraged to test their skills against our reigning champion – but has now moved to its own special room.
Of course, you don’t have to play 'TT' to work here. (AiLin’s engagement with the game largely consists of long-suffering head shakes whenever a ball caroms into her monitor. Come to think of it, that might be why the table now has its own room.) But, somehow TT has a way of getting its talons into even those who’ve never before hefted a blade (yes, ping pong paddles are actually called blades, which is just one of many ways that table tennis is cooler than you realise).
The extra room comes courtesy of expanded floor space. Gone is the dodgy financial advisor upstairs, whose primary management techniques consisted of bellowing at staff and very heavy stomping. Now Dog and Bone controls the whole premises and has conducted dramatic renovations. There’s a snazzy new entry hall. The new board room is particularly fine. The old board room is still fine, though it’s now full of desks, with people working at them.
The last few years have seen us sustain near-constant expansion. Since 2007 (when I started) Dog and Bone has more than quadrupled in size. Fortunately, we’ve never lost sight of the core principles that define and shape our workplace. I’ve personally never worked in a friendlier place.
We still all go out for a weekly lunch, though now thanks to increased numbers it more often requires a little forward planning and booking in advance. (Or Dan just makes a ‘captain’s call’, because when have those ever gone wrong?) Once there, standard practice is to carefully peruse the menu, make a show of considering all options, and then just order the burger. Sometimes Dan lets us try his salted caramel milkshake.
Otherwise lunch is dominated by the The Age quiz – or the Herald Sun quiz if we’re feeling capricious – read out in Michael’s velvet baritone. James’ speciality is any question about Bradman. Pre-1980s rock music and regional Australian geography sit right in David’s wheelhouse. Discussion of actual work is not encouraged.
There are also social functions, which have evolved from Pizza Meine Liebe around the TT table – kind of miss those, actually – to become movie nights and trips to the opera. (Ok, so far no trips to the opera. Yet.)
Our Christmas parties are invariably inventive and memorable. For example, last year Dog and Bone forewent the clichéd spread at the lawn bowls club, opting instead for a full Christmas week. The entire office relocated to Lorne for the week, working from a beautiful house high on the hills with a full view of the glittering ocean, culminating in our families joining us for a barbecue on Saturday afternoon. Another year we went yachting (kind of don’t miss that, actually).
Angus and Michael last year started Thursday Harvest, a weekly forum at which interested parties are invited to come for coffee and food before work to swap ideas in an informal though loosely structured manner. You can follow their musings at the blog here, and on Twitter here.
On a more structured though still attractively informal note, I mustn’t forget Dog and Bone’s annual planning day. Once per year all employees spend a day working with the Groupwork Institute at a strategic planning retreat. We break down into granular detail precisely how the business is operating – what is going well, what has been achieved, what can be done better – and where it wants to go.
It’s a great opportunity for all staff to provide valuable input into Dog and Bone, from the newest member all the way to the most senior and battle-hardened. By providing a facilitated opportunity to step back and examine the company, these planning days are instrumental in helping Dog and Bone become the company it is. Our very strong focus on customer service, for example, comes naturally from the very robust respect we have for each other, and a group-wide commitment to the improvement of ourselves and our services.