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In UK, Mobile Subscribers Overpaying by 200 Pounds Each Year

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About three-quarters of all post-pay mobile subscribers in the UK are wasting an average of about 200 pounds (US$327) per year, according to a study conducted by mathematical group Bill Monitor.

The main reason for users overpaying is that they are on the wrong contract, Bill Monitor said. About half of those on the wrong contract overestimate how many minutes they will spend on voice calls while about 30% underestimate their usage.

In total, Bill Monitor estimates UK subscribers waste five billion pounds (US$8.19 billion) per year.


“Everything is expensive when you go over your allowance,” one of Bill Monitor’s founders Dr Stelios Koundouros told the BBC. “However, the over-compensation of a four-times bigger contract that at least half of those on the wrong contract are getting, that’s not a rational response.”

For subscribers who underestimate their phone usage and opt for contracts with smaller tariffs, Dr Koundouros believes their choice to be “psychological”.

These subscribers select a lower plan to “convince themselves” they could spend less on monthly bills, although this might not necessarily be true, the BBC said.

[via BBC]
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