UK MOBILE PHONE DEALS TOP 7 MILLION

2012 News

April 10th, 2012

With £5 billion being wasted each year by people not being on the right mobile phone deal, Carphone Warehouse urges consumers to find the right tariff

• Nearly half (47%) of people are unaware of the data allowance, number of free minutes and number of free texts within their mobile contract
• On average, being on the wrong tariff costs each person £194 a year
• £173 million of the wastage spend comes from additional data charges for accessing the internet
• 74% access the internet on their smartphone at least once a day
• 81% of people don’t realise that having a Twitter app stored on a phone though not ‘in use’ can still use up data which may result in extra costs

Research released today by Carphone Warehouse has revealed there are now over 7 million mobile phone deals on offer in the UK. This staggering 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.

Findings from independent website Bill Monitor show that £5 billion is being wasted by mobile phone users each year as a result of people not being on the deal that’s best for them. A huge £173 million is being wasted due to data charges with over a quarter of people (26%) citing that they regularly exceed their contracted data allowance, resulting in additional costs being incurred. With more unlimited data tariffs than anyone else, Carphone Warehouse is today urging people to seek their independent advice in order to avoid bill shock.

Lack of awareness

One of the key problems identified was a lack of awareness across the board about which activities use up data – people didn’t 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 exists around the terminology used to describe data. People were generally unsure what the 1 ‘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. In addition to the use of apps, nearly three quarter of respondents (74%) access the internet at least once a day, with 67% accessing it more than a few times each day.

The research showed that over a fifth (21%) of people questioned regularly exceeded their monthly limits – whether it be free minutes, texts or internet data. On average, this cost nearly half of the respondents (48%) between £5 and £40 in addition to their monthly contract payments. However, over three quarters of people (84%) still have either free minutes, text or internet data left over at the end of the month, indicating they are simply on the wrong contract for their needs.

Andrew Harrison, CEO of Carphone Warehouse Europe and Geek Squad said, “When the UK is facing one of the hardest financial times in living memory, it seems crazy that £5 billion is being wasted on phone bills. At Carphone Warehouse, we want people to enjoy their smartphones without costing them an arm and a leg. That’s why we’re urging people to let us help them. We’ll compare every network and phone combination and give independent advice on which deal is best. The cost of data charges is a growing issue and this is only going to increase as more people convert to smartphones. Now, with more unlimited data tariffs than anyone else, we’re in the best position to offer independent advice to ensure people don’t waste money going over their limits.”

With an ‘unlimited data’ deal customers can easily avoid additional costs from internet usage, despite nearly half of respondents (47%) being unaware of the details of their contract. Carphone Warehouse has the widest range of ‘unlimited data’ deals, so offers the perfect solution for those that are frequently hit with extra charges on top of their monthly cost.

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For further information please contact Freud Communications:

Aimee Wells
T: 020 3003 6553
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