21 April 2026
New research from Fonto has revealed a significant and sustained shift in Australia's telecommunications market. Since January 2024, more than $1.6 billion of mobile and internet services have moved (on a net basis) away from the three major providers (Telstra, Optus and Vodafone) and towards challenger brands.
The findings are drawn from Fonto's continuous monitoring of real customer transactions and verified purchase surveys, giving one of the most accurate pictures available of how Australians are actually voting with their wallets.
WHY CHALLENGER BRANDS ARE WINNING
Challenger brands, known in the industry as Mobile Virtual Network Operators (MVNOs), are providers who don't own their own mobile tower infrastructure, instead reselling network capacity from the major carriers. Their growth has accelerated sharply in recent years, driven by a confluence of factors: sustained price increases from the majors, data breaches that eroded customer trust, and Australians actively seeking better value under tough economic conditions.
PRICE INCREASES ARE THE PRIMARY TRIGGER FOR SWITCHING
Postpaid prices across the three major networks have increased by between 20 and 35% since 2022, and customers have responded.
When asked about their switching intentions, 25% of mobile customers and 33% of internet customers said they would actively consider changing providers the next time they receive a price increase.
"In tough economic conditions where costs are genuinely rising, this makes it challenging for the major providers to retain customers while delivering continuous service improvements."
said Ben Dixon, CEO, Fonto
For challenger brands, that same dynamic represents a significant opportunity for MVNOs.
MORE THAN $20 BILLION OF SERVICES POISED TO MOVE
Looking ahead, stated switching intentions by telco customers paints a picture of extraordinary market movement. The research identifies more than $8.5 billion of mobile services and $12.5 billion of internet services that are expected to change providers within the next two years.
"Understanding who these customers are and how to either retain or acquire them is going to shape the industry not just for the future, but right now, when we know these customers are already considering switching providers." said Dixon.
For telcos on both sides of the equation, the implications are clear: the window to act on customer retention and acquisition is open right now, not at some hypothetical future point.
HOW FONTO MEASURES THIS
Fonto's research methodology is grounded in real financial data. Over 92,000 Australians have shared their daily transaction data with Fonto using Mastercard Open Banking protocols, enabling fast, private and secure data sharing. When a verified transaction triggers a relevant purchase, panel members are surveyed about their experience, switching reasons and future intentions. This approach dramatically reduces survey fraud and ensures insights reflect the behaviour of actual, verified customers.
ABOUT FONTO
Fonto is an Australian consumer research business tracking real purchase behaviour across key categories including telecommunications, energy and financial services. More than 92,000 Australians contribute verified transaction data, powering insights that help brands understand, retain and acquire customers. Learn more at fonto.com.au.
For media enquiries or to access the full research, contact the team at insights@fonto.com.au
