Are you paying too much for your mobile?

OUR research shows that three of the largest mobile phone providers are overcharging.

Sticking with your plan can mean paying for a phone you’ve already bought. If you are one of the six out of 10 people in the UK on a contract which includes a phone or tablet you could be paying hundreds of pounds more than necessary.

Currently, most providers don’t tell you how much of your bill goes towards the phone and how much towards calls or data. By comparing deals with equivalent SIM-only contracts, we’ve calculated that on average, people pay around £22 a month towards their phone.

At the end of a two-year contract, you’re free to move plans, or to switch providers. Or, if you’re happy with your handset and plan, you can just stay and keep everything the same. But there’s a catch - you’re no longer paying for the handset—but your price stays the same.

If you’re with Three, EE or Vodafone (who account for around 59% of the retail mobile market), the price you’re charged won’t change. You will continue to pay for your handset, even though you already own it. And this continues indefinitely, unless you choose to change your plan.

Wouldn’t it be nice if all providers reduced their customers’ bills when they stay in the same contract past the end of a fixed deal, to reflect the cost of the handset being paid off? It should not be your responsibility to stop yourself being overcharged. There are several reasons many people don’t act change their contract by themselves.

People don’t always have time to switch Choosing a contract is a difficult decision. There are around 7 million tariffs, and each provider presents their deals slightly differently. This leaves you with a huge number of decisions.

How many minutes and texts? How much data? Which handset? Is a larger up front cost better than higher monthly payments?

A mobile phone is an expensive purchase. Whatever choice you make, you’ll have to live with it for 24 months.

Providers don’t tell you how much you can save

We don’t think of these contracts as paying for the phone—because that’s not how providers present contracts. If there is no separation between the phone and plan payments, you wouldn’t think you’re still being charged for the phone.

Providers do send messages to say that your contract is up—but these usually say that you are able to ‘upgrade’ to a new handset.

Switching won’t necessarily save people money

Providers have entire teams dedicated to retaining customers. When people ring up to switch or change, they often end up being upsold instead.

Previous research by us shows that mobile phone firms are selling people expensive contracts they don’t need.

Smartphones are an increasingly important part of modern society.

Spreading the cost over 24 months is often the only way people can afford one. It’s not fair that they are penalised for that.

Mobile phone companies need stop routinely overcharging their customers.

They should separate out the cost of a handset from the cost of phone services. This would make it clear when the handset has been paid for.

It would make it easier to compare the price of contracts. And it would be easier for people to make the right decision.

You can get help, information and advice from your local Citizens Advice or visit www.citizensadvicewokingham.org.uk or contact Citizens Advice Wokingham at Second Floor, Waterford House, Erftstadt Court, Wokingham RG40

2YF. Tel: 0300 330 1189. email: public@ citizensadvicewokingham.org.uk