Research has revealed that Britons mobile phone users are paying an average of £190 too much for their mobile phones, due to being on the wrong contract for their usage.
Phone contracts, which usually include free minutes and texts vary in price from £5 a month so some that cost £75 a month.
The main reason people were spending too much was because people over estimated how many minutes and texts they would use each month, and the research found that many use just a quarter of their monthly allowance.
With so many mobile phone users in the UK, the research team estimated that we waste £5billion a year between us, on minutes and texts we don’t use.
Billmonitor, from Oxford, worked in conjunction with Ofcom to look at several thousand different mobile phone bills from all the main UK networks, apart from the network 3.
They found that on average, each person in the UK spends £439 a year on their mobile phone bill, send 300 text messages and only went for higher tariffs than they needed too as they were worried they would use too many minutes.
The research also found the popularity of smart phones had doubled the nations data usage in just one year.
As well as the customers who over estimated their usage and were spending money on tariffs they didn’t need, the research also found a group who under estimated their usage, and then had to pay large bills on top of their contracts for the extra minutes and texts they used.
The research, which doesn’t take into account the large number of people who take a contract with more minutes and texts than they need to qualify for one of the latest, expensive phones for free, found that a third of users under estimated their usage.
Dr Stelios Koundouros from the firm revealed, “Everything is expensive when you go over your allowance.”
“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.”