Which? is urging mobile phone users to take action when
their contract comes to an end, as new research from the consumer
champion reveals those who push for a better deal could save up
to £96 a year.
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.
According to the rules introduced by Ofcom in February last
year, telecoms providers, including mobile providers, must issue
end-of-contract notifications (ECNs) warning customers their
contract is about to end to help them avoid eye-watering price
hikes and encourage them to shop around for a better deal.
Which? found mobile users were most likely to do nothing
(13%) when they received an ECN 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.
Around 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.
One respondent told Which? they complained to their
provider when their ECN 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 they can offer you.
Around 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.
To help mobile customers to switch or haggle for a better
deal with their current provider, Which? is launching a mobile
switching service. The service offers a transparent way for
customers to compare deals across all major networks using
Which?’s impartial reviews of phone providers and find the best
one that meets their needs.
It follows Which?’s broadband and energy switching
services, which have helped around 100,000 households switch to a
better deal.
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.”
Notes to editors
Which? surveyed 4,358 adults in the UK with a mobile phone
contract. Fieldwork was carried out online by Savanta in October
2020.
Customers looking for cheaper mobile phone deals can
compare deals with Which? mobile switching
service, a transparent and impartial way to
compare tariffs and find the best mobile network.
Third of customers still
being hit by mobile phone overpayments rip-off, Which?
reveals
