More than four in 10 (42%) British mobile users spend an extra £40 per year on out-of-tariff mobile costs
The most common reason is exceeding mobile data limits (39%) suggesting many data-hungry users are on the wrong deals
Premium rate calls and texts catch out almost a quarter (23%) of mobile users, while roamingfees for using handsets overseas are hitting 20% in the pocket
Over a third (37%) are completely unaware of the difference between SMS and MMS messages, costing almost a fifth (19%) of mobile users in additional charges
Switching to a better mobile tariff for your needs could save you an average of nearly £100 a year.
In the past 12 months, Britons have spent a combined £811 million on top of their monthly mobile tariffs, according to price comparison and switching service Uswitch.com. More than one in four (42%) British mobile users pay out an extra £39.72 per year on unforeseen mobile charges.
The most common reason for out-of-tariff charges is exceeding mobile data limits (39%), implying many mobile users are on the wrong deals for their browsing, streaming and downloading needs. Premium rate calls and texts catch out almost a quarter (23%) of mobile customers, while roaming charges for using handsets abroad hit 20% in the pocket. Other costs to sting mobile users include exceeding call minute allowances (13%) and making calls to overseas numbers (9%).
Worryingly, well over a third (37%) are completely unaware of the difference between SMS and MMS messages, costing almost a fifth (19%) of mobile users in additional charges. While text (SMS) messages are usually included as part of your text bundle, MMS or multi-media messages include photo messages, texts containing emoticons and messages sent to more than one recipient. These are usually charged separately, and can cost up to 45p each, as shown in the table below, which reveals the costs of out of tariff charges for pay-monthly customers across the different mobile providers:
| Network | Calls (per min) | SMS (per message) | MMS (per message) | Data | Voicemail (per min) | Access charge for calling premium rate numbers (per min) | | EE | 30p to all networks | 12p to all networks | 40p | Prices start at £6 for 500MB. If you don’t buy an add-on, you won’t be able to use mobile internet until your next bill. | 30p | 44p | | Vodafone | 45p to all networks
Increasing to 55p from 23rd July 2016
| 18p to all networks
Increasing to 35p from 23rd July 2016
| 45p
Increasing to 55p from 23rd July 2016
| £6.50 per 250MB of data until your next monthly data allowance is added. | 45p
Increasing to 55p from 23rd July 2016
| 45p
Increasing to 55p from 23rdJuly 2016
| | O2 | 45p to all networks | 15p to all networks | 45p | Bolt-ons start at £3 for 100MB. If you don’t buy a bolt-on, you won’t be able to use mobile internet until your next bill. | Free | 45p | | Three | 35p to all networks | N/A – all packages have unlimited texts | 17.4pIncreasing to 40p from 13th June 2016 | If you run out of data, you’ll need to purchase an add-on to continue using data. Short-term add-ons last until the end of the bill cycle and are £2.50 for 250MB or £5 for all other add-ons (which match the data allowance on your plan). | 35p | 45p | | Virgin Media | 40p to all networks
Increasing to 45p from 1st July 2016
| 15p to all networks | 40p | £1 per day for unlimited data usage within the UK.
Increasing to £2 per day from 1st July 2016
| Free | 36p
Increasing to 45p from 1st July 2016
| | Tesco Mobile | 25p to all networks | 10p to all networks | 25p | 10p per MB buy an add on starting at £3 for 250MB. | 15p | 25p |
Source: Uswitch.com__. Correct as of 26th May 2016. All of the above charges apply to pay-monthly contracts
Ernest Doku, telecoms expert at Uswitch.com, says: “The really frustrating thing is these charges could easily be avoided. Billpayers are spending three quarters of a billion pounds on out of tariff charges, suggesting many people are languishing on the wrong mobile deals.
“Smartphones have made us all hungrier to surf, stream and search online and exceeding your data limit is the biggest culprit when it comes to excess charges. Only 14% of mobile deals sold through Uswitch.com offer unlimited data, which suggests people are still underestimating their data usage.
“Getting your tariff right plays as much a part in keeping bills down as understanding any hidden costs. If you’re not sure where you are overpaying, look at your bills over the past 12 months and see where your usage is heaviest. This will help you work out where you are being caught short.
“There are a few simple steps you can take to try and reduce your bills but, first things first, either speak to your current network to find a tariff that better suits your needs or, if you are out of contract, consider switching to a new provider that can offer you a better deal. You can save an average of nearly £100 by switching, so it’s worth looking into.
‘If you regularly receive excess charges, it’s worth exploring a pay-as-you-go option such as giffgaff instead. Its out of bundle charges are notably less than those offered on a pay-monthly contract from the big four providers.
“Making some basic changes to the way you use your phone can also help you avoid falling victim to typical out-of-tariff traps. For example, switching to messaging apps that use data to send photos and texts instead of SMS or MMS, considering Skype for overseas calls and checking out roaming bundles before you travel can all save you money.”
Charlotte Nunes
Phone: 020 7148 4664
Email: charlotte.nunes@uswitch.com
Twitter: @uswitchPR
Data based on a Uswitch.com survey of 2,000 UK telecoms customers via Censuswide, carried out between 11/3/16 and 14/3/16.
Respondents were asked: ‘On average, how much extra do you pay for your monthly mobile phone contract in a typical month?’ 90% said £0.01-£5, 10.6% said £6-£10, 4.6% said £11-£15, 2.5% said £16-£20, 1.2% said £21-£25, 0.7% said £26-£30, 0.4% said more than £30, 58.1% said I never pay extra. The mean is £3.31. Calculation for headline stat: 58.1% of mobile customers never exceed their mobile bill – meaning 41.9% do, by an average of £3.31 per month, or £39.72 a year.93% of UK adults personally own/use a smartphone. There are 52.4million people aged 16 and over in the UK. 93% of 52.4million is 48,732,000. 41.9% of that figure is 20,418,708 multiplied by £39.72 = £811,031,082
Respondents were asked: ‘Which would you say are the main reasons you rack up out of bundle charges on your monthly mobile phone contract?’ 39.3% said ‘exceeding my mobile data limit’, 20% said ‘using my mobile abroad (roaming)’, 19% said ‘MMS messages (these are texts with emoticons, or photographs, or texts sent to more than one recipient)’, 13% said ‘exceeding my allowance of minutes’, 11.6% said ‘calling premium rate numbers e.g. TV voting hotlines’, 11% said ‘texting premium rate numbers e.g. TV competitions’, 9.1% said ‘making calls to friends/family who live overseas’, 6.8% said ‘being charged to listen to voicemail’, 3.9% said ‘making in-app purchases or play expensive games’, 3.4% said ‘exceeding my allowance of text messages’ and 4.5% said ‘other’.
Respondents who have switched mobile network were asked ‘thinking about the last time you switched on average how much did you reduce your mobile bills by per month?’ The mean saving was £8.32 (x12 to get annual saving of £99.84). 24.7% said their bills stayed the same, 20% saved up to £5, 20.2% saved £6-£10, 9.8% saved £11-£15, 6.3% saved £16-£20, 3.7% saved £21-£25, 2.6% saved £26-£30, 1.6% saved £31-£35, 0.8% saved £36-£40, 0.8% saved £41-£50, 0.6% saved £51+. Not included in the mean saving were the 9.1% who said their bills increased when they switched
Respondents were asked: ‘Did you know that MMS messages on your mobile carry an extra charge, as they are not charged as texts or data?’ 37.4% said ‘No, I didn't know this’ and 62.6% said ‘Yes, I knew this’
14% of all deals sold via Uswitch.com in the six months between 22.10.15 and 22.4.16 offered unlimited data usage
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