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Mobile customers lose £5.4bn yearly thanks to bad contracts

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A new study has revealed that mobile customers are collectively losing out on £5.42 billion every single year because they chose the wrong contract.

Consumer watchdog Which? has published a report that says 72 per cent of British citizens could be saving £159 by changing to a contract that is more suited to their usage.

The overpayments are put down to two simple reasons: people aren’t using all of their allowances, meaning some spending is wasted; and some people pick contracts with over-limited allowances, which means they have to shell out when they need extra data, texts, or calls.

What’s more, it was found that 42 per cent of us think we could be getting better value elsewhere.

Ofcom, however, reports that 48 per cent of people have never switched supplier, highlighting a reluctance to seek more mobile for your money, as noted by The Telegraph.

Richard Lloyd, Whichs?’s executive director, said: “Mobile phone companies must do more to help people get the best deal, making switching hassle free and ensuring that pricing is transparent.”

“If we don’t see mobile firms making voluntary improvements then we will ask the regulator Ofcom to step in.”

Related: Ofcom touts 'real time video holograms' as potential use for 5G

Which? is also calling for network providers to unlock handsets automatically without surcharge, as well as notifying customers about the best deals in advance of their contract ending.

The watchdog also wants providers to itemise contract bills to show separate charges for both the handset and the network service.

Everlast

January 17, 2015, 9:56 pm

I think this is a false calculation, since if people were tighter on their mobile service spending, operators sooner or later will have to compensate the £5.4B from something, either raising prices or investing less into network capacity.

toboev

January 18, 2015, 9:03 am

Not so. If consumer behaviour as a whole changed in such a way as to lend more power to the consumer at the expense of the industry then it would just become a less lucrative industry. It has everything to do with the balance of power, who holds most power profits most from the bargain.

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