markh112
8th July 2005, 10:58 AM
NEW REPORT SHOWS CONFUSION IS COSTING MOBILE PHONE USERS JUST UNDER £1 BILLION* IN WASTED BILLS
Over half of consumers have never switched providers
Vodafone and Orange losing the most amount of users
Consumers get wise to free handset tie ins
Just over half (51%) of mobile phone users have never switched providers despite being on uncompetitive deals, according to a new report by financial comparison website, OneCompare.com.
Despite consumers being able to save an average of £15-£20 a month each*, inertia or lack of understanding is cited by 48% as the key reason holding them back, a situation perpetuated by mobile phone providers who offer a multitude of tariff options making it impossible to compare various deals.
Of those people who had switched, Orange and Vodafone were the big losers, which is unsurprising as OneCompares comparison tool shows that these two providers hardly if ever reach the top three deals for available tariffs. In addition of those people who hadnt switched a huge number were with the same uncompetitive providers.
The survey also casts doubt on the marketing strategy of the main mobile phone providers of tempting customers with new handsets in return for tying them up to new contract arrangements. Only 13% said this would persuade them to switch provider. More free talk time (26%) and more free texts (19%) were the main reasons to switch amongst mobile phone users.
Anthony Ball, director of OneCompare.com comments, Mobile phones are one of the last areas of consumer finance where confusion still reigns supreme and this means many consumers are rooted firmly to deals from providers that we know are highly uncompetitive.
This research shows that cost is still a big issue in this market as 57% of people would switch away from their current provider if they were given more free texts and talk time and most people are paying more than £30 a month in bills. It is encouraging though to see that many people have got wise to the trick of being offered flashy new handsets in return for uncompetitive contract arrangements.
Pay monthly
User type Low Monthly
cost Medium Monthly cost High Monthly cost
Best deal 3 - Talk and Text 200 £20.00 3 - Video Talk 100 (inc Add Text 200 Bolt On) £28.00 O2 - Online 200 Texter
£40.00
Worst deal Vodafone - 75 Anytime Xnet
(inc £6 Extras Pack Bolt On) £27.50 Fresh - Fresh 30 Extra
(inc 200 Texts Bolt On) £43.74 BT Mobile - BT Mobile 200
(inc 50 Texts Bolt On) £76.00
Saving made £7.50
£15.74 £36.00
Pay as you go
User type Low Monthly cost Medium Monthly cost High Monthly cost
Best deal O2 - Online Talkalot with Calls Allowance £10.00 3 - £25 top up (txt option) £25.00 (actual usage cost £18.45) 3 - £35 top up (txt option) £35.87
Worst deal Orange - Choose your own off peak with following boltons: Calls (any network) @ £12
Texts @ £8 £23.00 Tesco Mobile
Tesco Mobile
£44.00 Tesco Mobile Tesco Mobile
£88.00
Saving made £13.00
£19.00 £52.13
The OneCompare.com mobile tariff comparison tool is the only independent online mobile tariff comparison tool and is regularly updated to keep consumers informed in a fast moving market
Over half of consumers have never switched providers
Vodafone and Orange losing the most amount of users
Consumers get wise to free handset tie ins
Just over half (51%) of mobile phone users have never switched providers despite being on uncompetitive deals, according to a new report by financial comparison website, OneCompare.com.
Despite consumers being able to save an average of £15-£20 a month each*, inertia or lack of understanding is cited by 48% as the key reason holding them back, a situation perpetuated by mobile phone providers who offer a multitude of tariff options making it impossible to compare various deals.
Of those people who had switched, Orange and Vodafone were the big losers, which is unsurprising as OneCompares comparison tool shows that these two providers hardly if ever reach the top three deals for available tariffs. In addition of those people who hadnt switched a huge number were with the same uncompetitive providers.
The survey also casts doubt on the marketing strategy of the main mobile phone providers of tempting customers with new handsets in return for tying them up to new contract arrangements. Only 13% said this would persuade them to switch provider. More free talk time (26%) and more free texts (19%) were the main reasons to switch amongst mobile phone users.
Anthony Ball, director of OneCompare.com comments, Mobile phones are one of the last areas of consumer finance where confusion still reigns supreme and this means many consumers are rooted firmly to deals from providers that we know are highly uncompetitive.
This research shows that cost is still a big issue in this market as 57% of people would switch away from their current provider if they were given more free texts and talk time and most people are paying more than £30 a month in bills. It is encouraging though to see that many people have got wise to the trick of being offered flashy new handsets in return for uncompetitive contract arrangements.
Pay monthly
User type Low Monthly
cost Medium Monthly cost High Monthly cost
Best deal 3 - Talk and Text 200 £20.00 3 - Video Talk 100 (inc Add Text 200 Bolt On) £28.00 O2 - Online 200 Texter
£40.00
Worst deal Vodafone - 75 Anytime Xnet
(inc £6 Extras Pack Bolt On) £27.50 Fresh - Fresh 30 Extra
(inc 200 Texts Bolt On) £43.74 BT Mobile - BT Mobile 200
(inc 50 Texts Bolt On) £76.00
Saving made £7.50
£15.74 £36.00
Pay as you go
User type Low Monthly cost Medium Monthly cost High Monthly cost
Best deal O2 - Online Talkalot with Calls Allowance £10.00 3 - £25 top up (txt option) £25.00 (actual usage cost £18.45) 3 - £35 top up (txt option) £35.87
Worst deal Orange - Choose your own off peak with following boltons: Calls (any network) @ £12
Texts @ £8 £23.00 Tesco Mobile
Tesco Mobile
£44.00 Tesco Mobile Tesco Mobile
£88.00
Saving made £13.00
£19.00 £52.13
The OneCompare.com mobile tariff comparison tool is the only independent online mobile tariff comparison tool and is regularly updated to keep consumers informed in a fast moving market