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Mobile users could save £100 a year by switching deals

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Written by: Emma Lunn
20/01/2021
A study by Which? found that out-of-contract mobile customers could be overpaying by nearly £100 a year by not changing tariffs when their contract comes to an end.

The consumer champion surveyed more than 4,000 members of the public in October 2020 to establish how mobile customers behaved when their contracts came to end.

End-of-contract notifications

According to the rules introduced by Ofcom last year, mobile providers must issue end-of-contract notifications warning customers their contract is about to end. The aim is to help them avoid eye-watering price hikes and encourage them to shop around for a better deal.

But Which? found mobile users were most likely to do nothing (13%) when they received an end-of-contract notification compared to other telecoms customers (9%) – putting them at risk of overpaying on their bill.

Out-of-contract customers can quickly find their tariff is poor value and in some cases – such as with EE, Three and Vodafone – customers may end up being significantly overcharged at the end of a contract or continue to pay for a handset that has already been paid off.

Time to haggle

About a third of mobile customers either haggled for a better deal (33%) or switched providers (35%) when their contract ended, saving an average of £60 a year on their bills.

However, Which? found some customers who negotiated with their provider saved up to £96 a year.

Mobile providers are also required to inform customers of the best deals they have available in end-of-contract notifications. A fifth of mobile phone customers (20%) accepted the deal offered in their notification – protecting themselves from the worst price increases.

However, those who haggled or switched were more likely to get better deals for a similar price, for example with additional data or minutes. This is also a good opportunity for customers to ensure they are choosing the right tariff and not overpaying for unused data.

Of those that haggled with their provider, seven in 10 (70%) said they were offered an upgraded deal, which meant more data or minutes on their plan. This is compared to just over half (55%) who were offered an upgraded deal in their end of contract notification.

Better deals

One respondent told Which? they complained to their provider when their end-of-contract notification quoted a higher price than they were currently paying.

Fortunately, the provider eventually offered a larger data package at a lower price, which underlines the importance of contacting your provider if you want to ensure you have the very best deal it can offer you.

About four in 10 (44%) mobile customers who switched after receiving an end of contract notification said they did so because they had found a better deal elsewhere, and a quarter (23%) moved providers because the deal offered by their current provider was too expensive.

Natalie Hitchins, head of home products and services at Which?, said: “Nearly a year after end-of-contract notifications were introduced, our research shows mobile customers are less likely than broadband or TV customers to act when their contract ends and many are still grossly overpaying on their bills.

“This is why Which? has launched a mobile switching service to help people who have reached the end of their contract to compare the best deals on offer so they can easily switch providers or haggle for a better deal.”

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