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July 5, 2010

Brits fritter away £800 million on mobile contracts

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by Darren Allan

Top10.com has compiled some research which indicates that UK citizens waste the best part of a billion pounds on mobile contracts every year.

That’s to say people are on the wrong contract, and could collectively be saving this amount of money if they switched to the right one.

The crux of the matter is that 55% of the 2000 folks that Top10.com surveyed were on monthly contracts where they didn’t use up all of their minutes. Yet they didn’t switch down a step to a lower tariff to save money.

42% of respondents said they found mobile tariffs confusing, and 46% were worried they were on the wrong tariff and were being overcharged.

At the other end of the scale, Top10.com reports that 8% of those on monthly mobile contracts (some 1.3 million people) have to top up their bills every month because they go over their limit of minutes.

Alex Buttle from Top10.com commented: “With so many mobile phone contracts available, it’s no surprise that so many people find tariffs confusing. But it’s worrying that so many people are wasting money every month because they don’t change their tariff to match their level of usage.”

“Before people upgrade their phones or switch networks, we recommend they check their previous bills to work out how many minutes they’re actually using. This is even more important now that new devices like the iPhone and HTC smartphones come with long contracts, generally lasting 24 months. Making the right contract choice is just as important as picking the right phone.”

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