Zero Mobile will launch on Friday offering a $0 per month mobile plan.
It’s the first time a plan has been offered for free in Australia.
The Melbourne-based telecommunications company will use the Telstra network, providing extensive coverage across Australia.
On the free mobile base plan, users will get 1GB of data, free incoming calls and SMS, free voicemail and free calls to 1800 and 1300 numbers.
Outgoing calls and SMS will be pay as you go.
The catch
Similar to Spotify, Zero Mobile will feed advertising to mobile users on the free plans.
“On the free plan, we send out deals on our mobile app and that is how we make our money,” Mohammed said.
The ads will be targetted based on the user’s location.
Zero mobile users can upgrade their plans to include unlimited local calls and local SMS for $8.
They can also upgrade the amount of data - up to 40G for $38.
One Time Fees
Account Credit for $0 PAYG Plan only $10
SIM Card, Shipping & Handling (Payable upfront) $10
Total Minimum Charge to access $0 subscription with PAYG Calls & SMS; or $20
Total Minimum Charge to access $0 subscription with “Unlimited Call & SMS” $10
Came across this deal on 7news
The catch
Similar to Spotify, Zero Mobile will feed advertising to mobile users on the free plans.
“On the free plan, we send out deals on our mobile app and that is how we make our money,” Mohammed said.
The ads will be targetted based on the user’s location.
This is still a Pay as You Go plan. "Outgoing calls and SMS will be pay as you go."