Mobile phone users are wasting millions of pounds each year on unsuitable deals because they wrongly believe that they will lose their number if they switch.
A quarter of mobile users have switched network in the past 12 months, cutting their annual bills by a total of £895m, according to comparison website uswitch.com. Experts say switching saves £80 a year on average.
Yet according to uSwitch, 40% of mobile phone owners – 18m people – have never switched and many believe they have to give up their number if they move to a different network.
But customers have the right to keep their mobile number when they switch. They do this by applying to their existing network for a ‘porting authorisation code’, or PAC number, which they then give to their new provider.
The process is usually straightforward and under Ofcom rules it must be done within two working days. This is due to come down to one day from early next year.
For some customers stuck in longterm contracts it may not pay to switch until the contract ends because of exit penalties. Companies are entitled to lock in customers if they are upfront about contract terms from the outset.
Jon Barrow, senior researcher at consumer lobby group Which?, says that as prices have come down due to competition, most networks have lengthened their contracts.
‘The typical contracts used to be for 12 months,’ he says. ‘The norm now is 18 months, particularly where an expensive handset is offered, while some contracts run for two years.’
If you are in a contract and want to leave early, the penalty is usually the cost of the line rental left until the end of the fixed term.
It could still be worth switching if you are towards the end of your contract, particularly if you stand to make big savings or a good deal is available for a limited period. Barrow says: ‘Many people-who took tariffs a year or 18 months ago may find their deal is no longer suitable. They may be paying for a bundle of call time and text messages they don’t use up.
‘If you are going to switch, as well as searching the wider market it is worth asking your existing provider what deals it can offer as they may be the most competitive.’
Louise Taylor, 33, from Evesham, Worcestershire, has just switched from Orange to Tesco Mobile and is set to save £240 this year.
Louise, whose husband Ben, 37, is a salesman for an energy company, is at home looking after their first child, 12-month-old Jack. She had been with Orange for 11 years but says she realised only recently that the tariff was unsuitable.
‘I was paying about £30 a month to Orange, but the deal came with loads of ”free” call time and hundreds of ”free” text messages that I wasn’t using up,’ says Louise. ‘Since I’m now at home with Jack and our budget is tight I wanted to see where I could cut costs. That’s when I started shopping around for a better phone deal.’
Louise took out a new plan with Tesco Mobile last month via its website. She was able to keep her old phone number and the switch went through almost immediately. Tesco’s tariff is capped at £10 a month and Louise also gets unlimited text messages, but if her ‘call time’ exceeds her agreed level she has to top up her phone.
‘The deal really suits me because I tend to text friends and family rather than make phone calls,’ says Louise. ‘The cap also helps me to keep a tab on my spending.’
Cash call: Old phones are worth money
Two-thirds of consumers have at least one old mobile phone lying around their house while 19% say they have three or more unused handsets, according to a survey. But most households don’t realise they could recycle them and get some cash into the bargain.
Keir McConomy, managing director at sellmymobile.com, which conducted the research, says most mobile phone users don’t know how to go about recycling them or haven’t got round to it.
‘We calculate there are almost 70m unused phones in Britain,’ he says. ‘As well as taking up space around the house, these phones are a wasted source of money. There are plenty of websites and companies willing to give you cash for recycling your old phone.’
Typically, they offer a quote for your phone and then send a Jiffy bag for you to post the phone to them. Sellmymobile is a comparison website that allows consumers to identify where they can get best prices.
Phones should be in working condition and be able to be switched on to get the highest prices, although some firms will offer prices for broken handsets.
Many charities, including British Red Cross, Oxfam, Age UK and World Wildlife Fund, will recycle old mobile phones, with the proceeds going to charity.
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