large image

Trusted Reviews is supported by its audience. If you purchase through links on our site, we may earn a commission. Learn more.

Mobile customers lose £5.4bn yearly thanks to bad contracts

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.

Why trust our journalism?

Founded in 2004, Trusted Reviews exists to give our readers thorough, unbiased and independent advice on what to buy.

Today, we have 9 million users a month around the world, and assess more than 1,000 products a year.

author icon

Editorial independence

Editorial independence means being able to give an unbiased verdict about a product or company, with the avoidance of conflicts of interest. To ensure this is possible, every member of the editorial staff follows a clear code of conduct.

author icon

Professional conduct

We also expect our journalists to follow clear ethical standards in their work. Our staff members must strive for honesty and accuracy in everything they do. We follow the IPSO Editors’ code of practice to underpin these standards.