Tag: mobile service

Most U.K. mobile technology owners are paying too much for plans

A recent report has shown that 70 percent of consumers pay more than necessary for talk, text, and data.

Research by European firm, Consumer Champion, has indicated that between two thirds and three quarters (70 percent) of consumers in the United Kingdom are paying more than necessary for mobile technology services such as calling, text, and data plans.

It pointed out that many are paying for more services than they require and are locked into 24-month contracts.

Others, particularly children, have mobile technology service plans that are two low for their usage. This means that parents run the risk of regularly running up additional charges when they have exceeded their plan limits. The results of the study showed that an estimated 77 percent of consumers in the U.K. could be saving a minimum of £50 (around US$75) per year by changing their contracts. However, it also underscored the fact that there are some service providers that make it very challenging to switch, as they apply a charge to unlock handsets.

The result is that families across the country are paying billions of pounds too much for their mobile technology service.

Mobile Technology - UK smartphone owners pay too muchThe average savings, according to Consumer Champion, for seven out of every ten people, could be an average of about £159 (around US$240) each, simply by choosing a contract that better reflects their actual needs. For families that are paying for mobile service on four smartphones, that could bring about an annual savings of over £600 (about US$900), which is certainly nothing to laugh at.

Among the causes for the selection of the wrong plan by consumers is that the majority of smartphones – for example the Samsung Galaxy and Apple iPhone models – are sold along with 2-year contracts that require users to pay a monthly fee in order to cover their service and the cost of the handset, but that have a limit to the number of calls, text, and data usage that are included.

As many mobile technology users are on plans that will charge them more when they exceed the capped amount of calls, text, and data – particularly in the case of children – additional fees are run up that make the service far more costly than it would have been if they had upgraded their plans to something that covers a larger amount of service.

Mobile trends show that Americans pay more for service than other countries

Moreover, the prices in the United States are going up, even though they’re dropping around the world.

According to the 2014 International Market Communications Report, the latest mobile trends show that people in the United States are paying more for their wireless service than any other country studied within this report.

What’s more, unlike the majority of other countries that were examined, the prices are only going up.

The report was issued by as UK regulator – the Office of Communications, also called Ofcom – in order to examine mobile trends such as the prices being paid by subscribers in 18 total countries around the world. The analysis measured the average revenue on a monthly basis per mobile connection. The 18 countries spanned six different continents. What the report showed was that in 2013 in the United States, the average mobile customer paid approximately $47 per connection.

That amount was higher than the amount paid by customers in any other country studied by the mobile trends report.

Mobile Trends - America pays moreCustomers in Japan were the only ones who paid anywhere near that amount, last year. The majority of the countries surveyed in the report saw a monthly bill that was lower than $31 for their wireless services. Mobile subscribers in Poland, Brazil, Russia, China, India, and Nigeria all paid an average monthly bill that was less than $16.

Among the reasons that helped to explain why customers in the United States were paying more for their monthly mobile service than anyone else was that they were also among the highest data users when compared to other nations. Cisco data has revealed that the average mobile consumer in the U.S. used an average of 1.3 GB of data every month, last year. Comparatively, Europeans were using an average of 700 MB per month, last year. This represented under half of the usage by Americans. African and Middle Eastern customers were using an average of only 185 MB per month during 2013.

That said, while higher data usage helps to shed some light on why the mobile trends are for higher prices in the United States, what wasn’t explained was why the U.S. was among the few countries where the cost of mobile service was not falling.