Mobile phone users are being ripped off

More than 11 million Australians ‘pay too much’ for mobile phone bills, research from amaysim, an Australian mobile service provider, suggests. Industry figures forecast that close to a staggering $20 billion will be spent on mobile phone services this year - an alarming figure for the half of ‘pay as you go’ customers and the two-thirds of users under contract who think they’re paying too much on their mobile phone bill.

Australians blame high rates for calls and texts (28%), unnecessary flagfall fees (26%) and confusing tariffs (14%) as contributing factors to their high bills. Contract customers are really feeling the pinch with the majority (84%) claiming that phone providers lock them in and that it’s too difficult to get out of a mobile phone contract (72%). And there is plenty of anecdotal evidence that the beleagured mobile provider Vodafone is digging in when people want to get out of their contracts because they are not getting the service they were contracted to receive. There is suggestion from a law firm that there might even be a class action of Vodafone subscribers against the company for breaking their contract to their users.

More than three million phone users admit that they don’t understand the terms and conditions of their mobile phone contract. In fact, almost half say it’s difficult to know when they’re up to their credit limit to avoid exceeding their cap. If caps are exceeded, more than half of phone users find the additional charges excessive, with a third admitting they have no idea how additional costs are even charged.

Founder and CEO of amaysim Rolf Hansen says: “Australians love their mobile phones but they’re fed up with feeling locked in and receiving poor value for money. High rates and flagfalls are a major gripe for mobile users and complex credit and cap plans are leaving customers confused.

“Our research shows us that consumers want their phone service to be inexpensive and simple,” said Hansen.

Money expert Greg Smith says: “Many people wrongly assume that the only way to save money is to make big cuts or concessions. In fact, you can make significant savings by simply examining your monthly outgoings and making sure you’re getting the best deal from each of your service providers. The mobile phone market, for example, has some very competitive offers, such as the rates from amaysim, which could see your bills cut in half. Simply by swapping your SIM card, you can save.”