Phone users wasting nearly £200 a year on wrong contract

11 April 2011

An angry mobile customer, earlier todayApparently, three quarters of British folk are using the wrong mobile contract, meaning that their tariff is overcharging them.

Collectively, we're overpaying nearly £200 each, every year, according to a report from billmonitor. In total, that's a whopping £4.9bn a year down the toilet, which the mobile companies must be thrilled about.

The report pinpoints the sheer volume of contract options as the problem for British consumers, meaning that, largely, we don't know which one is the right choice for our needs.

So that's 76 per cent of mobile subscribers on the wrong tariff for their needs, 52 per cent of those are using a plan that is far too much for their usage (for example, getting nowhere near using up their call allowance and the like). There's a percentage of users who are on tariffs too small, which means they're paying extra for ploughing through their allowances.

Time to start shopping around it would seem, as it is obvious that the mobile companies aren't going to help us find the best value deal. Maybe the young lads over at Mobot are up to the task.

[CNET]

TOPICS:   Technology   Mobile

13 comments

  • me
    TWATS! My bill is not even 100 per year!
  • ddd
    Not sure how they work this out at all - sure I don't use all my minutes or texts and would love to be on a cheaper contract, but no cheaper contract existed for what I wanted. SO, if there was a suitable contract that I could swap to then I might well save 2090 quid, but there isn't
  • steve
    Only the last time I changed companies to o2 they charged me twice what they had said they would are their billing department couldn't work out why. After being ground down by about three hours over a week listening to greensleeves on their rubbish quing system I managed to change back to my old company.
  • vee
    To 'me', There are 6 reasons why your bill is not 'even 100 per year', as you so eloquently put it: 1. you have no friends 2. you're a tight wad 3. that's why you have no friends 4. you're rude 5. you don't have any social skills 6. that's why you have no friends Before you say there are only 5 reasons, no, there are 6. 'You have no friends' could be an infinite number of reasons why your bill is small, why your world is small, why your mind is small, and why something else might be small. I say to you, live a little and be kind to your neighbours. You might find a friend in them.... Take care.
  • You
    I wonder if this has anything to do with the thousands of people who make 4 minutes of phonecalls a week, but they absolutely MUST have a £500 jesus phone to do it on.
  • Paul
    I pay £6.60 a month on a sim only deal, i get 600 x net miuntes, 500 texts and unlimited data usage. So thats less than £80 a year. Yes you need a phone but i had a phone off my last contract (htc touch pro 2) thats 2 years old and still going strong so no need to replace. When it finally goes ill get a sim free one for ~£250 (htc desire). Still miles cheaper than an 18 month contract paying £30 a month for the latest smartphone with the same inclusive minutes. Just be smart about things and you'll save loads of money.
  • Me
    to Vee. 7. none of the above as I've got the Sim only deal from O2. You don't need to spend a fortune per month to keep in touch with your friends.
  • Me
    Btw. Paul is right!
  • vee-is-a-twat
    Vee you dumb fuck I pay £7.50 for 600 mins unlimited texts and net. You are a fucking numpty paying over the odds for your phone bill. I guess you don't have many friends as yo seem a dumb fuck. Heed your own advice prick.
  • Tweedskin
    @Vee-is-a-twat Learn to use punctuation.
  • callum
    Vee - you missed off number 7: 7. You're not a sheep spending a fortune on phones with fancy brand logos - the features of which (above standard phones) you'll never use - so you can show off to everyone else how great you are.
  • jaffacake
    yes lots of people have minutes left on their tariff at the end of the month. I like the freedom to make phone calls when I want without worrying about the cost - and i'm prepared to pay a fixed, known cost to achieve that. I'd guess much of the wasted money is people on a "Pay As You Go" scheme, who should sign up to a contract - but they either are too daft to sign up, or have a credit rating too low to be eligable. I've learned the hard way.... 1) NEVER GO FOR A CASHBACK SYSTEM (though these are less common nowadays) 2) BUY THE PHONE WITH CASH, AND GO FOR 30 DAY ROLLING CONTRACTS. that way, in the long term, you'll save a fortune unless you are the kind of user than uses their phone only for emergencies.
  • callum
    jaffacake - No, none of this applies to PAYG users as they don't have bills that can be analysed. Avoiding the cashback system in no way means you'll "save a fortune". Please tell me how I could have saved money on my first cashback deal. After 12 months I had paid vodafone £420 in return for a (basic but decent) phone and 12 months of 500 mins/500 texts. I had received from dialaphone £460 in cashback. If you can find me a non-cashback deal with a phone that will cost me MINUS £40 over the course of a year, I shall concede you are right. As for buying the phone with cash, not necessarily. The networks subsidise the cost so you aren't necessarily paying more than you would have buying it separately (though clearly in many cases you are). It purely depends on the contract.

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