Buying a Mobile Phone (Smartphone)

When it comes to a mobile phone, are you an Apple person or an Android person? Believe it or not, the experience is similar, and both camps always copy what the other does. Fanboy tendencies aside, we will consider what you should know and consider when buying or selecting a new mobile phone. We will cover smartphones in this guide, not simple handsets with limited functionality.

A smartphone is a mobile phone that performs many of the functions of a computer, typically having a touchscreen interface, internet access, and an operating system capable of running downloaded apps.

WHY will a new mobile make a difference to my business?

While evaluating a smartphone, you should consider how important this device will be in helping you run your business. For example, beyond making phone calls, you could be using it to take food orders, process an EFTPOS payment, make roster changes to staff shifts, take photos, check your bank balance, pay your staff, enter a receipt or check your current business profit.

WHAT you need to know about Mobile Phone Retailers

You can buy a mobile phone outright or via a phone plan. Buying a phone outright means paying upfront versus via a plan where the payment is spread across several years. Which way is cheaper depends on whether a mobile phone carrier has subsidised the phone via a phone plan to encourage you to join their network. Subsidies normally only exist on popular handsets to encourage customers to join their network.

Be sure to read our essential guide on Mobile Phone Plans. Each phone vendor has lots of information on their websites. By visiting a phone shop or consumer electronics retailer, you can see many models on display, including some powered up for trial. Different retail stores will be aligned closely with one phone carrier, and the range might be limited based on who the carrier is aligned with. Traditional retailers like JB HiFi or Harvey Norman will have a greater capacity to choose from.

HOW to decide on Mobile Phone Features

You should consider which of the following features when deciding which phone will suit your needs:

  • Android vs IOS – or Google vs Apple. Your choice here will limit which phones you consider and possibly the apps available to you. If the app you need to use is only available on one platform, then your decision is made. You might also consider what you are familiar with today.
  • Country of origin – almost all phones are made in Asia and China. They may be designed elsewhere, and the software will come from an American company. Most recently, there have been many security concerns relating to the country of origin, but there is no proof of its validity.
  • Prices – whether buying a phone outright or on a plan, a $3000 phone is still expensive (especially if you lose or break it). You will likely have the phone for 2 to 3 years, so it is worth considering a mid-range phone from about $700 up, and it will do everything you ask of it.
  • Screen size is a diagonal measure of the screen represented in inches. The larger the screen, the easier it is to see content such as text or pictures. The downside is that a larger screen means the phone will be bigger to hold and store and consume more battery life. Some users may prefer a small smartphone.
  • Screen resolution – More expensive phones have a higher resolution so that you will have a crisper image on the screen. Also, consider what the screen is made of, which will determine its likelihood of breaking. Gorilla glass is good. The bigger the number, the better.
  • Processor – Just like a PC, the better the processor, the faster the phone will complete tasks. More expensive phones have faster processors.
  • Battery Life – Some brands don’t even quote battery size, for example, 3000mAh. In reality, battery life depends on how much you use your phone and for what. A phone vendor will normally promote battery life if that is a key feature of their phone. Some phones have user-replaceable batteries. Battery life does deteriorate over time based on the way and number of times you charge your phone.
  • Carrier frequency – A phone bought overseas may not be suitable for Australia. Carriers in Australia use different radio frequencies to make mobile phone networks work which may be different again overseas. Ensure the phone you choose is designed to work with your chosen carrier.
  • 3G, 4G, or 5G – This refers to the technology behind how your calls and data are sent and received. The key benefit is that the bigger the number, the faster the data (and the lower the reaction time latency) will be. Note this is not your allowance but rather how quickly you can download a large file. The phone and the phone network need to be compatible.
  • Camera – The photos you can take on a phone are amazing, but this is also a measure of price. Consider if you want that functionality and how much you are prepared to spend on this feature quality. Camera features include quality represented as megapixels, zoom, wide-angle, telephoto, focus ability, low light, and software manipulation features such as stabilisation.
  • Warranty – For how long and what will they include?
  • Reliability/Service – How easy is it to get phone support or repairs, and where would you have to go to get a repair done?
  • Cost of Repair – If you break a phone screen, what is the cost of getting a new one?
  • Rugged – Some phones are ruggedised, which means they will better survive a drop from a height. Great if you are a tradie.   At the very least, we suggest you consider an optional case to protect your investment.
  • Water-resistant – You should never take your phone swimming, but many phones these days will survive a brief dunk in water without failure. This key feature will likely deteriorate over time with knocks and bumps.
  • Storage – How much memory does the phone have, and or can you add a microSD memory card to expand it? If you are taking lots of photos or storing large files on your phone, you should consider this. Cloud storage is also a feature, and Google or Apple will provide a certain amount free, after which you pay.
  • Other – Other things you may consider are weight, design, colour, bendability, and how you unlock your phone.

HINTS

When getting a new phone consider what optional accessories may make your life easier. These may include a second charger – one for work, one for home, a car charger and holder, a case and/or screen protector to keep it safe, or a power bank to make sure you always have power.

SUMMARY – Which phone to buy?

Unfortunately, even if you buy the best phone available today, a new one will come out before you know it. You might have phone envy but remember this is a key tool so make sure the features make you more efficient in your business.

Be sure to visit our sister publication GadgetGuy for all the latest news and reviews on Mobile Phones.

Mobile Phone Plan for small business

I’m sure you have had a mobile phone plan for years and have a pretty good idea of how it all works.  In business, your phone becomes a critical tool that must be operational to keep the lights on. What are the differences between a personal plan and a business plan? This guide will help you understand what you should consider before signing up to a mobile phone plan for your business.

One thing for sure is plans change constantly. With around 30 companies offering mobile phone plans there is a lot of choice.  If you are a Sole Trader a personal plan may give you a better deal but if you have 10 phones in your business a business plan may be better.

WHY should I consider a Business Mobile Phone Plan?

A well-chosen plan will not only save you money but ensure you have the services to help you facilitate your business when you need them. For example if you have 10 phones you can have them on one bill reducing your administration.  A business plan might allow you to share a data pool between your workers allowing you more flexibility.

WHAT you need to know about Mobile Phone Plans

In Australia there are 3 physical mobile phone networks owned by Telstra, Optus, and Vodafone. However there are many Mobile Virtual Network Operators (MVNOs) who resell the offerings of the physical networks. You should take the following into account:

  • Network Coverage – Australia is a big country and mobile phones will only work where the main population lives. Does the provider offer the coverage you need where you need it?
  • MVNO coverage – Some MVNOs may not have full access to the coverage from their network provider. If you are expecting the same coverage in a rural area you may be disappointed!
  • Price – Normally expressed as how much you pay per month.  Note some prepaid offers might be for a 28 day period which equates to 13 periods a year instead of 12. Thus a lower ‘monthly’ price may actually add up to a higher amount than you expect over a year.
  • Phone plans – Normally means a new phone comes with your plan with its costs built into your subscription fee.  There are different ways the network operators do this and may involve subsidies on their part or even a separate lease with conditions like returning the working phone at the end of the agreed period.
  • Handset choices – Allows choice of different model handsets as part of your Mobile Plan.  The more expensive the handset the more your subscription is likely to be. Be sure to read our essential guide on Mobile Phones.
  • Sim Only – A Sim is a small chip transferable between mobile phone handsets that has your phone number associated with it.  A Sim-only plan means you do not get a handset with your subscription.
  • Contract – Or no contract refers to your ability to change network providers.  If you have a contract for 3 years you are locked into your payments unless you pay an exit fee.  This is normally associated with a handset where they must recoup its cost.
  • Post Paid or Prepaid – As a small business we would expect you would have a postpaid account where you pay monthly as opposed to a prepaid or pay as you go account.
  • Data allowance – Accessing the internet from your phone is critical in the business world. Your allowance relates to how much data you have to use in your subscribed period. If you go over your allowance you will pay a high price for excess usage.
  • Talk and text allowance – Most plans have moved to unlimited but refer to the number of talk minutes and the number of text messages included in your subscription.
  • International call inclusions – If you have overseas suppliers an inclusion in your plan could be a big money saver.  Check how many minutes are included in your subscription and to what countries?
  • Roaming inclusions – If you travel overseas normally your plan will not allow you to make calls or use data using your Australian subscription allowance.  You can still make calls but it can be expensive. Check if there is any inclusion or special deals available.
  • 4G or 5G – This refers to the technology behind how your calls and data are sent and received. The key benefit is the bigger the number the faster the data will be.  Note this is not your allowance but rather how quickly you can download a large file.
  • Value add  – Some providers might offer music or video streaming services as an inclusion, for example, sports streaming.

HOW do I make a decision on a Personal vs Business Mobile Phone Plan

Now you understand the factors you need to consider you must decide between the vast range of available business and residential mobile phone plans.

Personal plan benefits:
  • A sole trader or a business with only a few staff may find a residential plan is cheaper
Business plan benefits:
  • Normally allow a single bill for all accounts making it easier to process and compare users
  • Data allowances may be able to share across all users
  • The provider might do you a volume discount
  • Customer service is normally better, for example, shorter queue times
  • Bundling discounts across other services like fixed internet
  • Special insurance plans to keep phones operational

HINTS

If you’re a sole trader, you can use a personal mobile plan and claim work-related mobile use as a tax deduction.

 If your business is registered as a company, trust, or partnership, you should check with your accountant or bookkeeper. In general the ATO expectation is you can only claim the proportion the phone has been used for business purposes.

 Many people carry two phones, one for personal use and one for business, which is a personal choice.  You may wish to keep your lives separate or just have one number for both.  Indeed many mobile phone handsets are capable of what is referred to as dual SIM.  This means one phone can hold two SIM’s meaning two phone numbers (two Mobile Phone Plans) so you could still have the flexibility of a personal number and a business number but only carry one handset.

SUMMARY – three reasons to choose

To summarise if we were to pick three factors in how you make your decision we would recommend you consider coverage, data inclusion, and value for money.

You can find further information on current best value plans visit our sister site, Gadget Guy. A 12-month prepaid SIM-only plan may give you the best value from only a few dollars a week.