Networks make £8 billion per year on top of monthly fees

Networks make £8 billion per year on top of monthly fees

Mobile users pay £130 in addition to their monthly fee per year, according to a study by Moneysupermarket.com. The average user goes 23 minutes and 23 texts over their plan every month, indicating that most people are on  a plan that is too low. Mobile users get 166 minutes and 133 text as a part of their plan on average.

The additional money paid by users adds up to £8 billion for the networks. Not surprisingly then, one dealer source tells Mobile, the networks want customers to be on plans with too few minutes and texts.

‘Networks want you to undersell because that’s when they make money. But if you are a good salesman your customers should always be covered. If you went up a plan you would get a lot more for your £5,’ he says.

There is a conflict of interest as networks make more money from usage outside tariffs, while dealers only make commission on the monthly plan. O2, however, is giving commission to some distributors on minutes and texts outside price plans, and Vodafone is also thinking about doing this, the dealer says.

Written by Mobile Today
Mobile Today

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