Are Mobile Users Choosing the Wrong Contract?
A new study was just released from Billmonitor that examines mobile phone users and their contracts in the United Kingdom. Surprisingly, 76% of those users were found to waste over $8 billion (£4.899 billion) in monthly payments due to choosing the wrong contract.
The British study analyzed the most common contract of 600 minutes per month and their findings were a bit surprising. When the data is expanded to include other services like web data and texting, 76% of all British mobile users were found to be on the wrong plan.
Of those users on the wrong plan, 52% only used around 25% of the minutes they pay for on average. If those users switched to a 300 minute contract, they would save around $327 a year. Also, 29% used way too many minutes and paid hefty overage charges. By switching to a 1200 minute plan they would save around $528 a year. Even the remaining 19% that are on a suitable plan were not using all of their available benefits and discounts.
The most staggering statistic is likely that 82% of UK mobile customers that pay overage charges, and just 5% rack up 50% of those charges. Nearly $5.7 billion dollars in fees were paid on charges for roaming calls, texts, and data usage outside of the allowance.
Even though this study took place in the UK, it's extremely likely that the United States suffers from the same syndrome. People are either choosing contracts with entirely too many minutes or not enough. Unfortunately, there is often little middle ground at major carriers like AT&T, Verizon, and Sprint. In order to get an unlimited data plan for your smartphone, you'll probably have to fork over extra money for unlimited talk and/or text. However, this study definitely provides a reason to check your monthly statement and make sure you're on the most appropriate contract for your usage.
Comments