Ten steps to cheaper mobile bills

By ED MONK FOR THISISMONEY.CO.UK
Updated:

 

MOBILE phone networks are engaged in a scrap to keep customers and retailers are resorting to sacrificing their commission to get your business.

Mobile phone user

It all means that savings are there to be had for customers willing to shop around and negotiate hard on their mobile bill.

Latest comparisons show it is possible to save hundreds of pounds on contracts purchased just a year ago if you make the most of the deals on offer now.

This is Money shows you 10 ways to cut the cost of your new contract.

1. Go online

As a general rule, the internet is the most effective way to get the best deals. Using comparison sites such as Onecompare.com or Simplyswitch.com allow you to compare the latest deals without having to tour the High Street – and you won't have to brave in-store sales staff.

However, networks sometimes offer periods of free line rental so check with them to see if the tariff and phone you want is available.

2. Get a contract

Pay-as-you-go customers might feel they are keeping costs down, but contracts are likely to work out cheaper for anyone other than occasional mobile user. PAYG users should look back to see what how much they have spent topping-up each month to decide if a contract will be better value for money.

3. Work out what you need

Mobile phone contracts will typically give a set number of free minutes and text messages for your monthly line rental, but it's the calls made outside your plan that can push up your bills. Look at previous bills to work out when you use your mobile. Also, the networks hold information about when you use your phone – your pattern of usage. Request to see the information and use it when you change your contract.

If you make a lot of calls to other mobiles ensure that your free minutes apply to all networks. Look for deals that allow free minutes to be used at any time.

Beware the upgrades that offer more 'free' minutes and texts for a small increase in your line rental. Do you really need it?

4. Change network

Unsurprisingly, you are more likely to get a better deal if you shop around for a new network. In the past, people have chosen networks on the strength of their coverage, but retailers say that all the major networks can boast of the same coverage nowadays.

Changing network doesn't mean you have to change your phone number. If are going to change, request your Port Authorisation Code - a three to six digit number - from your current network.

Ask if you can link the code with your phone on your new networks. If this is not possible, call the customer services number of your new network and give them the code. It will take about a week to enable you to use your old number.

5. Be prepared to haggle If you don't want to change network you can try haggling with your current one. The best time to do this is when you are reaching the end of your contract when you can threaten to switch.

Use deals from other networks as a comparison but explain that you wish to stay with your current network. Ask them if they can match the price and terms of the comparison deal.

It is usual for these requests to be rejected – in which case explain that you want to arrange the cancellation of your contract. The staff handling cancellations are trained to talk you into staying, and have the power to arrange deals on contracts. This is your chance to improve your free minutes, texts and upgrade your handset.

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6. Get your cash back

Retailers - both online and in-store – will offer discounts. These will be described as a number of free months' line rental but usually come as cashback schemes. Beware that you will actually start off paying the full line rental amount.

To take full advantage of the deals you need to send the retailer your phone bills when the offer period finishes, and they will send you a cheque in return. Use free services such as Onecompare.coms cashback reminder to make sure you don't forget.

7. Do you really need an itemised bill?

At around £1.50 a month it is unlikely to break the bank but living without itemised billing is an instant money saver.

8. Shop around for insurance

Insurance for your handset will prove valuable if your phone is stolen, lost or damaged but it is costly. Insurance through retailers is normally £5 to £7 a month but can go up to £15. See if it is cheaper to get an 'all risks' extension to your home contents insurance to cover items you carry on your person.

9. Look for cheaper international calls

If you make international calls it will be cheaper to use special mobile service providers. Network contracts can offer an allocation of international calls at cheaper rates but companies such as Juvino.com allow you to dial a UK landline number to make international calls for even less.

10. Reduce the price of texts

If you regularly use more than your free texts each month and are locked into your contract, look at services like Hotxt.co.uk that offer significantly cheaper text messages.

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