May 5, 2023

Phone firms row over whether customers are overpaying

Most mobile customers sign a deal to pay a fixed monthly amount which includes airtime, usage and a payment towards the cost of the phone itself. Virgin Media O2 says a survey conducted on its behalf, which spoke to more than 5,000 adults in the UK, found 3.9% of all UK mobile customers were still on contracts with EE, Vodafone and Three that been rolled over beyond their initial time plan. "Like Virgin Media O2, Vodafone customers on split contracts with Vodafone EVO will not see any further handset charges once their 0% finance deal ends and will therefore never overpay for a phone. All handset customers on legacy contracts are contacted repeatedly when their contract comes to an end, and after three months - if they haven't moved onto a new contract already - we automatically apply a monthly £5 discount." "They're right to kick up a fuss over this. These customers that are paying for handsets after contracts end are very lucrative for operators, which is why perhaps they've been so slow to move," he said. Since the cost of living crisis, customers are more likely to stay on the same phone deal for longer, rather than upgrade to a more expensive deal, and so are more likely to fall out of contract and end up overpaying.

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