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£13bn wasted on mobile phone contracts

By Elliot Wright, 18th January 2010

Brits with mobile phones are losing £13bn on wasted texts and minutes, according to a report by moneysupermarket.com.

The price comparison site found that the average adult wastes over £250 worth of mobile allowance a year - this is the equivalent to 27 hours of calls.

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On a monthly basis, mobile users waste 45% of their tariff's minutes and text allowance as the mobile industry rakes in billions of pounds from the pricy contracts.

Experts believe millions of consumers are signing up to contracts that exceed their needs in order to get premium handsets - such as the iPhone - for a cheaper one-off price.

For example, a Nokia N900 on an 18-month Vodafone contract with 250 texts and 75 minutes will set the customer back £210 for the handset. To get the phone for free the customer has to take out a contract that gives them 3000 minutes a month - a limit that most users rarely come close to reaching.

Compared to 2007, adults are now wasting up to 40% more minutes and twice as many texts - with 98 minutes wasted per month two years ago compared to 137 minutes now.

Mike Wilson, manager of mobiles and broadband at moneysupermarket.com said:"With a rise in the popularity of the iPhone and other smartphones with increased capabilities and internet access, the allowance of texts and minutes on a tariff has become less important. With these other considerations taking priority, people are wasting more texts and minutes than ever before.

"It's great that consumers are under their monthly allowance to avoid any extra costs, but it's also important to get the most out of your contract for what you pay each month. One of the best ways to do this is to assess what your monthly usage is and find a contract that suits you best. You may find a much lower, cheaper tariff meets your needs."

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