In this guide
Millions saw their mobile phone bill increase by up to 17.3% in April. Here’s how to find out if you’re overpaying and what you can do if you are.
Telecoms regulator Ofcom is investigating whether or not mobile network providers have been clear enough about the possibility of in-contract price rises. This can leave customers with unexpectedly higher mobile phone bills.
Find out below how to compare phone contracts and get the cheapest mobile phone deals for you.
We explain:
- The average monthly phone bill – how does your deal compare?
- Why are mobile network providers being investigated by the regulator?
- How much data do you really need?
- How much is the average price of a SIM-only deal?
- What are some tips for switching your mobile phone provider?
Read more: Why Vodafone and Three’s merger is bad news for customers
How much should I be paying for my phone bill?
How much your phone contract costs each month will depend on a number of factors.
This includes:
- How you use your phone
- The amount of data you need
- The tariff you’re on
- Length of the phone contract
- The handset you own
This is why SIM-only contracts, where you’re only paying for minutes, texts and mobile data and not the cost of the phone itself, are amongst the cheapest mobile plans.
While you might have to pay in the region of £60 a month for the latest iPhone, if you’re happy to stick with your existing mobile and aren’t using a lot of data, you could pay less than £10 with certain SIM-only contracts. This can save you a lot of money in the long run.
For other tips on lowering your household bills amid price rises and an increasing cost of living, check out this article here.
Read more: How to save money on broadband
What is the average monthly phone bill?
The average monthly bill for somebody on a mobile phone contract that includes 100 minutes, 75 SMS and 5GB data is £11.51, excluding the cost of the handset, according to Ofcom.
Heavier users on a mobile phone deal with 500 minutes, 150 SMS and 15GB data will pay an average £15.53.
Why is Ofcom investigating network providers?
In December 2022, telecoms regulator Ofcom began investigating broadband and mobile phone companies regarding whether or not they were being upfront enough about in-contract price rises. These normally occur in March or April every year.
Following an analysis of complaints data over a 15-month period, Ofcom reported concerns that certain phone network providers had not made it clear that prices would increase during the term of a contract. This can impact customers by leaving unexpected dents in their wallets.
Ofcom rules state that providers must make any potential price rises clear in the terms of the contract, “prominently and transparently”. If providers have not followed this rule, they must allow customers to leave their contract without paying a penalty.
Ofcom will look at evidence from companies to determine whether or not their rules have been followed.
Looking to switch broadband? Use this free comparison tool to find the best deal
Our top tips to reduce your phone bill
From taking a closer look at your phone-use habits, to comparing phone contracts and switching mobile phone providers, there are numerous ways to reduce your bill.
We outline the top ways below.
Compare phone contracts: how much data do you really need?
When you’re comparing phone contracts, pay close attention to the amount of data that’s included.
While a higher level is reassuring – particularly if you love streaming TV on the go – your data allowance will ramp up your bill and lots of people buy more than they need.
To find out your typical data usage, contact your service provider or look at your bills.
According to Ofcom, the average amount of mobile data used each month is 4.5GB. If you’re surprised by how much data you’re using, it pays to get a better understanding of where it’s going.
Every time you connect to the internet using your provider’s network (so not when you’re at home on WiFi) you’ll be using data.
Browsing and checking emails won’t use much. But if you’re using your phone to stream music and videos or to play games online you’ll use much more.
You may also race through data if you’re in an area without WiFi and you tether your laptop or tablet to your phone to use the internet. If you do this often, it might be worth considering a plan that comes with unlimited data.
This table shows how much data different activities use:
| Activity | Estimated data consumption |
| Web browsing | 1MB – 4MB per minute |
| Uploading photos | 1.5MB per photo (depending on image quality) |
| 1MB – 2MB per minute | |
| Maps navigation | 100KB – 200KB per minute |
| Gaming | 1.5MB upwards per minute |
| Music streaming | 1MB – 2MB per minute (standard sound quality) |
| Podcast streaming | 60MB – 100MB per hour |
| Skype / video call | 90MB – 1.4GB per hour (depending on quality) |
| YouTube / video streaming | 2MB – 3MB per minute |
| YouTube / video streaming HD | 4MB – 6MB per minute |
| 1MB = 1,024KB 1GB = 1,024MB |
If you want to curb your data usage, you can switch off mobile data. This will mean you can only go online when you have access to Wi-fi.
Alternatively, you may be able to set up a spend cap.
A spend cap will limit how much data you’re able to use outside of the allowance included in your mobile phone deal and can prevent charges spiralling.
The easiest way to compare the best mobile phone deals is to use a comparison website. Check out Ofcom’s list of approved sites here.
Access the best mobile phone deals by buying the phone separately
You’ll get the cheapest mobile plans if you go for a SIM-only deal, but that means you’ll need your own handset.
If you don’t have one you can carry on using, or you want an upgrade, there are still ways to cut the cost of buying a new handset.
Buying the handset outright through a reseller website and getting a SIM-only deal can sometimes work out cheaper than buying your phone as part of a contract with your network. However, always do the maths first to check you’re getting a good deal.
Buying a less current phone, choosing a refurbished phone or buying one second-hand can also save you money. In many cases used phones are sold “as new”.
Towards the end of the year, it’s also worth keeping an eye out for Black Friday phone deals.
Shop around and it shouldn’t be too hard to find a cheap SIM free phone.
If you want to spread the cost of buying a phone outright you could consider paying for it with a 0% credit card.
Save money with a SIM only deal
You can compare the best SIM-only contracts on comparison websites.
While many SIM-only deals are on a contract basis, you can also buy pay as you go SIM deals. Here you get a bundle of texts, minutes and data for a fixed fee. £10 a month could typically get you unlimited texts / minutes and 10-15GB data.
Alternatively, you can get an older style pay as you go plan where you pay for each minute, text or MB of mobile data you use.
Pay as you go SIM may not necessarily be cheaper than SIM-only contracts, but they are more flexible and there won’t be a credit check.
Before agreeing to any SIM-only deal always check the signal strength for your chosen network first. You can do this using the Ofcom mobile and broadband checker.
For tips on giving your finances a health check, watch our video below.
Pay as you go or pay monthly?
Most people go for pay monthly contracts – often with a phone included in the contract. However, paying as you go may work for some.
Pay as you go
Pros:
- You’re not tied into a contract
- No credit check
Cons:
- No free minutes/texts or data unless you buy a “bundled” deal
- You may need to buy top-ups if you use your phone more
- You need to buy your own handset
Pay monthly
Pros:
- A phone is included in the cost of the plan and there is usually a wide choice (unless its SIM-only)
- Minutes, text and data are included in your monthly payment. If you go over your allowance, costs may still be less than pay as you go
Cons:
- You will need a credit check
- You could be tied into a contract for up to two years
- You cannot roll over unused allowance to the following month
As a general guide, regular phone users will pay less with a contract whether that’s on a deal with a phone included or SIM-only.
For tips on improving your credit score, read Everything you need to know about credit scores
Switch mobile phone provider
Getting the cheapest mobile plans may involve switching mobile phone provider and getting a new handset. However, this might not be as much hassle as you think, if you follow these steps.
- Check you’re eligible to switch (you’ll have to pay to exit a contract)
- Check the signal strength of your new provider
- Request a porting authorisation code (PAC code) from your current network to keep your current number
- Contact your new provider and give them the PAC code
How you move contacts from one phone to another should be straightforward but will depend on the phone and whether they are stored on SIM card tor the phone. Your network provider should be able to give you instructions.
Looking for more ways to save money?
For more ideas on how to save money – not just on your phone – check out the following guides from the Times Money Mentor experts.
Important information
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