£5 Billion Wasted On UK Phone Tariffs

Posted: 10/04/2012 08:55 Updated: 10/04/2012 09:03   PA

Mobile phone users waste £5 billion a year by being on the wrong tariff, new research suggests.
In a study of 2,034 people nearly half (47%) were unaware of their data allowance, and number of free minutes and texts on their contract.
On average being on the wrong tariff costs each person £194 a year.
Of the £5 billion wasted, £173 million came from additional data charges for accessing the internet.

And 81% of those polled did not know having a Twitter app stored on the phone, though not in use, can still use up data possibly resulting in extra costs.

The research, released today by Carphone Warehouse, revealed there are now more than seven million mobile phone deals on offer in the UK.

The figure has been fuelled by the recent rise in smartphones with internet access - which has added an additional layer of complexity to an already baffling arena, pollsters said.

Andrew Harrison, Carphone Warehouse chief executive, said: "The cost of data charges is a growing issue and this is only going to increase as more people convert to smartphones."

Lack of awareness was cited as a problem among phone users - people did not realise that video calling a friend through the Skype app (51%), logging into Facebook through an app (43%) and having a Twitter app stored on the phone though not in use (81%) all contribute towards their data allowance.

Ambiguity also existed around the terminology used to describe data with customers generally unsure what one 'megabyte' meant when put into the context of the number of songs that can be downloaded (79%), the number of emails that can be downloaded, read and sent (83%) and the number of minutes that can be watched on YouTube (87%).

Only just over a tenth of people (12%) knew what 1MB would cost them outside of the data included in their contact.

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Mobile phone users waste £5 billion a year by being on the wrong tariff, new research suggests. In a study of 2,034 people nearly half (47%) were unaware of their data allowance, and number of free ...
Mobile phone users waste £5 billion a year by being on the wrong tariff, new research suggests. In a study of 2,034 people nearly half (47%) were unaware of their data allowance, and number of free ...
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12:50 PM on 04/20/2012
For £10 a month I get 200 free talk minutes,unlimited text & 500Mb of internet plus for being a "loyal" Orange customer another 200 free talk minutes
10:43 AM on 04/20/2012
I think they need to better explain the 'free 500mb/1GB internet' etc as nobody really understands how much surfing they can do on an internet phone for that much.

BTW, my Samsung Galaxy Mini is superb! :)
09:37 AM on 04/10/2012
Two years ago I got a nice new shiny phone on a £34 a month tariff. I made sure I was on an what the seller called an "Unlimited Internet Package" knowing that at sometime in the next couple of years I would be using the internet heavily via my mobile phone. Last spring I discovered that "Unlimited" suddenly means 500mb. As for the shiny phone - it was great for doing everything except making telephone calls(it got sent away 3 times and replaced twice). It came as quite a relief to everyone around me when it got stolen (which while insured the insurance did not pay out on "thefts") and I started using a cheap mobile phone I had brought back in 2003.

My contract fortunately runs out in two months (another bug bear - I thought I was signing up to an 18 month contract, worked out to be 24 months), I look forward to changing myself to a sim only 12 month contract for less than half the cost of my existing tariff. I have also got the money saved up for a new phone to buy away from the mobile phone contract provider, and I have a third party insurance company offer me a very good deal on my new mobile.

I just wish that my customer experience had not been such a buyer beware ripoff experience.
10:46 AM on 04/20/2012
Insurance doesn't cover theft? WTF?... What's the point of having it insured?!
03:34 PM on 04/20/2012
Exactly.

I won't make that mistake again (I am ready to make a whole new batch of mistakes), I will shop around. I have several 3rd party insurers lined up and I also now have it covered in my home insurance (some insurance company do that - though I would not trust them either)