Citigroup Making Cents

Topic 6: Mobile Phones

» Mobile phones - did you know?
» Getting into a contract
» Premium services

Where do you start? Is it a need or a want? Ask yourself. If I need a mobile phone, what phone will I get? What plan will I go onto? How will I manage the bills?

Making CentsWe already know from research undertaken for MakingCents that some upper primary aged children have mobile phones or they are planning to get one. The upper primary unit, Calculating the cost uses the character of Alex and explores a range of issues about owning and using a mobile phone. There are some useful facts and figures about mobile phone use in this unit too! You can find this unit linked to the appropriate state or territory for you, in the teachers' section on this website.

There are a number of useful websites that you can visit to find out more before you make a decision. www.phonechoice.com.au is an independent website that provides information and unbiased advice about almost everything to do with mobile phones. You could do well with starting here or visiting this website if you are about to change you phone or plan.


Mobile Phones - Did you know?

  • It is estimated that half of all mobile phones are prepaid
  • 65% of 12 and 13 yr olds had a mobile phone in 2007 rising to 75% in 2009
  • Mobile phones are used mostly to keep in contact with family members
  • Mobile premium services such as internet access, downloading music, entering competitions by sending a text to a certain number can cause significant difficulties for some people.

You could use owning and using a mobile phone to help you work through some of responsibilities associated the use of a mobile phone. If you are considering getting your child a mobile phone then you could do this activity together.


Making CentsGetting into a contract
Always look at, and check the fine print. You may get into serious debt if you make a quick decision without reading the contract. Free calls and text messages may be great but if they are within a certain time and then all others are charged at a premium rate then that is not so good. '40 free text messages per week' sounds good until you work out that you send around 30 a day! We look more closely at some to the traps in the next section on scams.

Remember;

  • The key thing is to stop and think, and check things out before you buy
  • If you feel pressured say ‘Thanks, but no thanks. I don't like being pressured into important decisions.

So:

  • If something sounds too good to be true, it probably is
  • Don't sign anything straight awa
  • Read the fine print- especially at the bottom of a page
  • Ask for time to think about it

Consider the following before signing up to a contract for a mobile phone for yourself or someone who is under 18:

  • How long does the contract run for
  • Penalties for ending the contract early
  • The cost of the handset
  • The charges and fees for various services

Premium Services

There is some good news for parents and mobile users in the family. In July 2009 new legislation has been created to cover mobile premium services. Mobile premium services, such as ring tones, music, games, competitions, sports scores and horoscopes, are delivered to a mobile phone for a higher cost than regular short message services (SMS).

The code was developed by the telecommunications industry and is part of a package of measures taken by the Australian Communications and Media Authority to protect the consumers of mobile premium services.

Under the new code consumers will need to give two independent confirmations of a request - "a double opt-in" - before they can subscribe to an ongoing premium SMS service.

There are a number of true case studies in publication called Sort It! These are about mobile phone disputes that the telecommunications industry ombudsman has been involved in. If you would like to order a free copy of Sort It! You can do that via the publications section of TIO website www.tio.com.au.

You can also make a complaint to the TIO or if you think you have been misled by deceptive advertising you could go to the Australian Competition and Consumer Commission (ACCC) at www.accc.gov.au.

 

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