Layla UsmanAre You Overpaying for Business Telco in Australia? 7 Hidden Costs SMEs Miss
For many Australian small and medium businesses, telecommunications is seen as a fixed cost — something you set up once and forget about. Mobile plans, business internet, phone systems and support contracts quietly tick along in the background while invoices roll in month after month.
But here’s the uncomfortable truth: most Australian SMEs are overpaying for their business telco, often without realising it.
Between outdated contracts, unnecessary add-ons, and poor support models, telco overspend has become one of the most common (and most overlooked) operational leaks in Australian businesses. At BroadConnect, we regularly review telco environments where businesses are paying 20–40% more than they need to for the same, or worse, service.This article breaks down the 7 hidden telco costs SMEs miss, why they matter, and how Australian businesses can regain control without sacrificing reliability or compliance.
WWhy Telco Costs Are Hard to Spot
Unlike rent or wages, telco bills are fragmented. You may have mobile services from one provider, internet from another, phone systems managed by a third party, and support billed separately. Over time, this complexity hides inefficiencies.
Most SMEs also stay loyal to major carriers like Telstra for peace of mind — but loyalty often comes at a premium that isn’t always justified by performance or service outcomes.
1. Paying Enterprise Rates for SME Usage
One of the most common issues we see is SMEs being placed on enterprise-grade plans that far exceed their actual usage needs.
Businesses often sign multi-year contracts assuming higher tiers mean better reliability. In reality, many plans include inflated data allowances, unnecessary international inclusions, or bundled features that go unused.
According to data published by the Australian Competition and Consumer Commission (ACCC) in its telecommunications market reports, SMEs frequently struggle to compare plans due to complex pricing structures. This lack of transparency allows overspending to continue unchecked.
A properly reviewed telco environment aligns actual usage with plan design, rather than defaulting to the “safe” (and expensive) option.
2. Legacy Phone Systems Quietly Draining Budget
On-premise PBX systems — including older platforms from vendors like Avaya, Panasonic or NEC — often appear “paid off” on paper. However, their ongoing costs tell a different story.
These systems typically require:
- Paid maintenance contracts
- Specialist support
- Expensive hardware replacements
- Limited scalability
As Australia continues its transition to IP-based services under the national broadband framework managed by NBN Co, legacy systems become even more costly to maintain and integrate.
Modern cloud phone systems reduce these overheads significantly while improving flexibility for hybrid and remote teams.
3. Internet Plans That Don’t Match Business Reality
Many SMEs are either over-provisioned or under-protected when it comes to business internet.
Some pay premium rates for bandwidth they never use. Others choose cheaper plans that lack service level agreements (SLAs), redundancy or proactive monitoring — resulting in downtime that costs far more than the monthly savings.
The right approach isn’t simply “faster internet”, but internet designed for business operations, especially for VoIP, cloud apps and platforms like Microsoft Teams.
4. Hidden Support and Call-Out Fees
One of the least visible telco costs sits in the fine print: support charges.
Many providers advertise low monthly rates but charge separately for:
- Fault investigation
- Configuration changes
- After-hours support
- Simple admin tasks
These costs often only surface when something goes wrong — exactly when your business can least afford delays.
At BroadConnect, we see SMEs paying thousands annually in reactive support fees that could be eliminated with a managed telco model and local Australian support.
5. Paying for Licences Nobody Uses
Over time, businesses grow, shrink, restructure and relocate — but telco licences often stay exactly the same.
Unused mobile SIMs, phone extensions, call centre licences and collaboration tools quietly remain active long after staff have left or roles have changed.
Without regular audits, this “licence creep” can add up to tens of thousands of dollars over a contract term.
6. Missed Opportunities to Bundle and Optimise
Another hidden cost is fragmentation.
When mobile, internet, voice and cloud services are spread across multiple providers, SMEs lose access to:
- Bundled pricing
- Unified billing
- End-to-end accountability
More importantly, no single provider has visibility across the full environment — making optimisation almost impossible.
A consolidated telco strategy allows services to be designed together, rather than patched together over time.
7. Downtime Costs That Never Appear on the Invoice
The most expensive telco cost is often the one you never see billed: lost productivity and missed revenue.
Missed calls, poor call quality, slow internet and unresolved faults directly impact customer experience and sales performance. Yet these costs rarely show up in financial reports.A study referenced by IBISWorld Australia shows that service interruptions disproportionately impact SMEs due to their smaller teams and tighter margins.
We have worked with BroadConnect for several years now and their service has been amazing. When we transitioned our office phones and internett to BC, the team was quick to answer queries and gave regular updates during the process. The support team is always quick to respond to queries and provide updates to our phone system and provide solutions to any issues we have.
TThe Real Cost Difference: Legacy vs Optimised Telco
| Cost Area | Typical SME Setup | Optimised Telco Model |
| Mobile plans | Oversized, locked contracts | Usage-aligned, flexible |
| Phone systems | Legacy PBX with maintenance | Cloud-based, scalable |
| Internet | Generic plans | Business-grade with SLA |
| Support | Pay-per-incident | Included, local support |
| Visibility | Fragmented billing | Centralised reporting |
How BroadConnect Helps Australian SMEs Cut Telco Waste
As a 100% Australian-owned telco provider, BroadConnect specialises in helping SMEs uncover hidden telco costs and replace them with simpler, smarter connectivity.
We don’t push one-size-fits-all solutions. Instead, we:
- Review your current contracts and invoices
- Identify unused or misaligned services
- Migrate legacy systems without disruption
- Provide Australian-based support you can actually reach
Whether your business operates from a single office or across multiple sites, our focus is on reducing spend while improving reliability — not just moving services around.
Are You Overpaying Right Now?
If you haven’t reviewed your telco setup in the last 12 months, there’s a strong chance you’re paying for services you don’t need — or missing out on better options now available in the Australian market.
A structured telco review can quickly reveal:
Opportunities to future-proof your business
Immediate cost savings
Contract risks
Performance gaps
Contact Us
Talk to our Sydney-based team today to find out how BroadConnect can transform your business communications.
📞 Book a Consultation or email us at hello@broadconnect.com.au to get started.
Getting connected with Broadconnect is simple and quick:
Visit us: Level 26, 1 Bligh Street, Sydney NSW 2000
Call: 1300 880 330
Email: hello@broadconnect.com.au