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UK: Wrong Tariffs are costing us £8.45bn per year!

By: , IntoMobile
Saturday, January 19th, 2008 at 7:42 PM

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A study by moneysupermarket.com has found that the Mobile Phone Industry is raking in more than £8.45bn per year from customers on the wrong tariff!

A study conducted last November revealed that the ‘typical’ user has 166 voice minutes and 133 SMSs per month free, as part of their package. But, the ‘typical’ user also uses an extra 23 voice minutes, and 23 SMSs over and above their allowance, thus incurring up to £130 extra per year.

What we are basically saying here is that lots of people (over 2000 in the study, at least) don’t check their tariffs regularly, and hence don’t have the most appropriate tariffs.

I use O2 in the UK, and my experience in this area is great when I do call them – O2 are only too happy to do a usage review with me, and advise where I could tweak the tariff!

Nonetheless, if this report is any kind of indication, it does suggest that many people are getting hit for charges that they might not necessarily have to pay, were they more interactive with their provider.

Update: apparently there was some over-calculation on the figures (due to the fact that the UK market is heavily Prepay), so in fact the figure is closer to £2.5bn. But heck, that’s still pretty big…

[Via: Mobile Marketing Magazine]

About The Author

Ben Robinson

Ben is a 10+ year veteran of the Mobile industry – starting his career when SMS was a still a relatively new concept for most people (!), he has now consulted on everything from bleeding-edge Mobile content, to the next-gen accessories you might view it on. As a result he has a broad and deep knowledge in numerous areas of Mobile – from network operators to device vendors, to infrastructure and middleware vendors (not to mention content delivery) – and has worked for companies in all of these areas! He is based in the UK, a hotbed of activity for mobile, and recently became a father for the second time – as oppose to in his younger years when he was happy spend time tweaking all manner of mobile devices to 'nth' degree, he now looks for services and hardware that provide the most efficient, compact, and reliable improvements to his already manic life! It’s his opinion that Mobile solutions should be there to help to make your life better – if a particular solution (be it service or device) isn’t doing this, he believes you need to ask the very important question of why you continue to use it... His focus at IntoMobile is mainly on Mobile content, services, and infrastructure, particularly as regards the UK market – and with the occasional look at devices. Additionally, using his extensive experience in the industry, he will provide commentary on the industry at large, with regular (and hopefully thought-provoking) articles.

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    I have noticed that these companies tend to make the process of billing such complicated and difficult for anyone to understand that there are discrepancies of a $ here and there in each and every bill. Now if the companies and charging just $1 fro each and every bill, just calculate the amount they are getting extra every month!