Whether your phone's super-glued to your ear or just used for the odd call, the chances are you're massively over-paying for the minutes and texts you use.
With 1,000s of deals up for grabs picking the right one may seem like a lottery. This guide will speedily show you how to get the cheapest contract tariff, then check for added discounts.
In this guide
Quick links
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Quick tips before you start
Haggle down contract costs without changing network
It's possible to slash costs without switching. Anyone on a contract is holstering a serious MoneySaving weapon - loyalty. When nearing the end of the contract, ask for the very best deal possible, not just on your network, but any out there.
If your provider won't budge, tell it "give me a better package or I'll leave", and you'll be put through to the disconnections department, which internally is called "customer retentions" and has massively more discretion to offer better packages to keep you.
Remember though - this usually means you are signing up for a NEW contract - make sure you ask for how long before committing.
Full step-by-step guide: Mobile Phone Contracts.
Want an iPhone?
iPhones are not MoneySaving, but if you must get your mitts on one it's possible to pay less and get a shorter contract if you know where to go.
If you're currently out of contract, the biggest decision is whether to tie yourself down to a new one, or to stump up for a no-contract handset, which gives you far more freedom, but at a hefty upfront cost. The guide takes you through all the options plus the iPhone tool compares available tariffs.
Full info, tips and comparison tool in the guide: Cheap iPhones
Recycle your old handset for £100s
If you're getting a new handset, recycle the old one and you could earn £100s, depending on the make, model and condition of the phone.
There's a raft of companies out there willing to recycle your phone for cash yet be warned the value differences are huge, eg, a Nokia N95 ranges from £5 to £60.
To help, use MSE's unique Mobile Selling Comparison tool; it instantly tells you what each of the main mobile recycling sites will pay. You can get up to £150 for some handsets. Of course others are virtually worthless, but it's worth a quick try.
Once you agree to sell, companies send a freepost bag for your phone, you post it, and then they give you the cash.
Escape contract s early
If you're stuck in a contract you can't afford there are a few things you can try to soften the blow.
Shifting to a cheaper plan on your network, paying off the contract and using unfair contract changes can all work.
Full info and tips in the guide: Escape Your Mobile Contract
Text the UK and overseas free
For textaholics several websites offer free texts to the UK and overseas countries. If you're near a PC, ditch your mobile and use this instead.
Alternatively some nifty software providers let you use your internet connection to text for fractions of a penny.
Full details in the guide: Free Texts
Free Directory Enquiries from mobiles
There's an 0800 service that gets you free directory enquiry calls from landlines. Unfortunately you can't just dial this number from your mobile; most mobile providers charge over the odds for these calls.
However, special services like 0800Buster and 0800 Wizard allow you to bypass this and get free 0800 calls from your mobile. By using these together you can get yourself permanently free directory enquiries on your mobile.
Full details in the guide: Free Directory Enquiries
Use free wi-fi hotspots
Rather than using up data from your inclusive bundle when you're out and about you can access free wi-fi hotspots. McDonalds, Starbucks and Wetherspoons all offer it free.
It's also worth checking My Hotspots, Free Hotspot, and Hotspot Locations for finesse. Where necessary, be sure to limit your search to hotspots listed as free only.
Full details in the guide: Free Wireless Internet
Call abroad for free or cheap
Calling someone overseas from your mobile earns companies big bucks, yet it doesn't have to be so. There's a range of tricks to get free international calls from your mobile.
For example Rebtel* has a clever piece of kit letting you make calls to more than 50 countries, again mainly Europe, Israel, North America, Australasia and the Far East, simply by dialling a local rate phone number.
Therefore if you've free minutes on your mobile this call will be included, if not you'll only pay a local call rate.
Full details & how it works in the guide: Free International Mobile Calls
Cheapest way to call from abroad
Trip abroad and your mobile provider may hike prices massively and charge for receiving calls too. Yet you can substantially cut the cost by using networks' hidden deals or by getting a specialist sim card to use overseas.
Full details in the guide: Mobile Roaming
Would Pay As You Go be cheaper?
The days where PAYG tariffs were only cheaper for lower users are long gone; PAYG phones are now far more competitive with contract-style bundles available when you top up by a minimum amount.
The main reason for choosing a contract is wanting a new handset, as they're heavily subsidised on contracts. But be careful you're not paying for it with a higher monthly premium.
Contract
Pay a monthly fee and get an inclusive bundle varying in minutes, texts and mobile data.
- Smartphones cheaper with a contract
- Often better for heavy texters/callers
- More likely to get free mobile data
- No risk of running out of credit
Pay As You Go
No fixed contract, pay for what you use via top-up vouchers, online or on the phone.
- No credit check
- Can be cheaper for light users
- No contract commitment
- Easier to budget
How to get the cheapest contract
First work out what you need, then get the cheapest tariff, only after that find the deals. It's a simple three-step plan:
Step 1. Pinpoint your exact usage
Knowing how much you use your phone and what you do most, ie, text, call or web surf is crucial to getting the best plan.
Match free mins/texts closely to your usage. If you don't, go over and you'll overpay for calls, go under and you'll overpay on the package.
The easiest way to check usage is to simply dust off your last 3-6 months' bills, jot down what you use every month and average it. Or ring your provider and it'll usually tell you. Once you've got the info check the following:
How many minutes or texts do you use?
Most people massively over-estimate the number of minutes and texts they use and end up on tariffs over and above what they really need.
Plus do you get free minutes with your landline? If so there's no point in doubling up.
How much do you use the web?
Smartphones are fast becoming the norm and if you use your phone to constantly search the web you need to watch the amount of data you use.
1GB is what most networks offer on average as a "fair usage policy".
For checking emails, looking at Facebook and watching the odd YouTube video it should be more than enough. To give you a rough idea, one of our techies, MSE Joe, has an iPhone 4 on Orange with a data allowance of 750MB/month. He doesn't use even half of this, averaging about 350MB of data a month using Spotify, Twitter, Facebook and email apps. He doesn't watch any videos however. Downloading videos, TV shows or other web heavy apps may take you over your limit and incur heavy charges.
Do you make peak or off peak calls?
Inclusive minutes can usually be used at any time but some contracts will cost less for off peak minutes. If this is when you use your phone, go for the cheaper option.
Most landlines now come with free minutes so if you're at home, use your home phone, not mobile.
Do you mainly call one person?
Some providers offer free calls to those on the same network or discounts to a certain number you pick. If the bulk of your calls are to one person, this kind of tariff can seriously slash the cost.
Step 2. Find the perfect tariff
Once you know your usage you need to find the cheapest tariff to match it.
Give yourself some leeway as a slightly higher monthly fee will be cheaper than paying extra call costs.
Are you happy with your existing handset?
If you already have a decent handset in good nick, you'll get a far cheaper deal if you opt for Sim-only. Here you simply get the Sim card with the tariff, no handset.
If you want a new handset, first think about what features you want and will use. A useful site that allows you to compare up to three handsets at a time is Esato. It lists full specifications for each model so you can see at a glance if it has what you need.
Most accurate results
For accurate results billmonitor* finds the best tariff by accessing your online bills (doesn't include Three Mobile or Virgin).
Provide it with log-in details of your online account and it calculates average usage over the last three months to find the best contract.
It assumes your habits won't change, but to ensure you don't go over your tariff minutes (which is expensive) it'll pick a tariff very slightly above your needs.
Is it safe to give your log-in details?
billmonitor says it follows a robust data security policy which it's outlined to Ofcom, the telecoms regulator and encrypts all users' passwords.
Ease, speed & functionality
For ease of use and if you want a quick hit, MoneySupermarket* and Omio* come top. Simply pick monthly cost, minutes and texts for the cheapest tariffs.
Crucially you can tell both what handset you want and they'll find cheap deals for it.
MoneySupermarket just pips Omio to the post as it lets you filter deals including data.
Omio doesn't automatically sort by cheapest price so make sure you change the dropdown.
Omio does however let you sort tariffs further, by phone features and operating system (eg, Android, iPhone or Symbian). You can also sort by network (useful if your coverage is hit and miss), brands and style of phone.
Extra coverage
MobilePhoneChecker covers some smaller networks and retailers that the others don't so it's worth checking too.
It also has an excellent filtering system so you can clearly pick and choose what you want.
It was built by a site user, who has since become part of the MSE team, though it is still operated independently by him, in his spare time.
Extra coverage
MobilePhoneChecker covers some smaller networks and retailers that the others don't so it's worth checking too.
It also has an excellent filtering system so you can clearly pick and choose what you want.
It was built by a site user, who has since become part of the MSE team, though it is still operated independently by him, in his spare time.
Before you sign up - check coverage
Before committing, check signal strength in the place you use your phone most. No coverage isn't grounds to return your phone (outside normal Consumer Rights), it's your responsibility to check.
Providers all have maps to indicate what 2G coverage is (for basic calls and texts) and some have 3G coverage too (for web surfing), although providers tend to be generous and over estimate signals. Ofcom also has a PDF map detailing 3G coverage.
The providers make it clear these maps do not guarantee coverage. There are two ways to check before you buy. One is to borrow a friend's phone if they're on the right network. Alternatively most providers offer free PAYG Sims. Nab one and test it in all the places you use your mobile most:
T-Mobile and Orange now give access to each other's network free, so if you're on either, cross-check the maps.
Can you return a phone if you can't get coverage?
Strictly speaking you have no legal rights if you find yourself unable to use your phone due to poor coverage.
The only exception is if you've been missold. If a salesperson guaranteed you'd get coverage and you don't this would be reason to get a refund. However proving this would be difficult.
That said, some providers have returns policies on refunds due to poor coverage, some of which exceed the statutory 7 day cooling off period.
| Cancellation limit after purchase | Return reasons allowed | |
|---|---|---|
| Three Mobile | Any time | Coverage only |
| O2 | 14 days | Any |
| Orange | No return allowed | n/a |
| Tesco | 14 days | Any |
| T-Mobile | 7 days | Coverage only |
| Virgin Mobile | 28 days | Any |
| Vodafone | 7 days | Coverage only |
| Carphone Warehouse | (i) | (i) |
| Phones4U | (i) | (i) |
| Industry average | n/a | n/a |
| Source: Communications Consumer Panel. (i) Depends on network chosen. July 2010 | ||
Step 3: Get the right discount
Now you know the correct tariff; the aim is to re-use the comparison services this time finding out which will give you the biggest discount on your chosen tariff. Don't be tempted to switch to a different tariff to get a top cashback/freebie deal - let the tariff rule.
Always pick the right tariff first, then even if your promo falls through, as many have, you're still on the cheapest package
MobilePhoneChecker and Omio both allow you to find the right tariff and then search for specific deals for that tarriff.
On MobilePhoneChecker, simply click on the drop down "view offers" and it will show you which retailer offers cashback or gifts with that specific tariff.
On Omio, to find deals click on the tariff for more details and then "see all deals for this tariff".
The mobile market is rife with a variety of discount packages, meaning the same tariff on the same network can cost vastly different amounts. Discounts include free gifts and monthly fee but it's most important to understand the difference between these:
- Redemption cashback. The big discounts come in the form of a 'cashback redemption' that has to be claimed from the retailer, yet they're notoriously unreliable (see beating the cashback trap below).
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Automatic cashback. These are cashback deals where you're sent a cheque automatically without claiming. They usually don't offer as big a discount as manual cashback.
Some deals can also be part manual, part automatic cashback; if that's the case only count on receiving the automatic amount. - Cashback via cashback sites. It's possible to sometimes beat the above deals with some power house cashback offers, most commonly for Sim-only deals. However, don't think of this type of cashback as guaranteed, there can be and are problems. Read the full Top Cashback Sites guide for info.
Beat the cashback trap
Encouraged by the mobile networks, many retailers offer big cashback deals. These deals often look too good to be true, and usually they are. The simple fact is many people won't collect on them, and retailers know that. Yet if you do get cashback it can often cover an entire year's worth of mobile monthly fees, so could be worth many £100s.
If you've followed the system above, you're assured of a good deal, because you're on the right tariff; so there's no problem trying to grab the cashback on top. Reclaiming usually involves filling in a form and sending it off, up to five times during the contract period; fail to do this exactly and you'll miss out on the whole discount. The main things to watch for are:
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Always read the small print. It's important to discover every hoop they'll force you through. Does each time you send a form trigger some payment? Or, as usual, is it a "send all or get nothing" scenario, so if you miss sending one form, the whole thing's invalidated?
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Call and check the timings needed. Never assume a cashback deal is simple. If it says "send your bill after three months", this may mean three months from application, three months from activating the phone or after you've received your third monthly bill. Call up the cashback company and check.
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Be careful with addresses. The address you send claims from needs to be the address used to order with, otherwise the claim may be invalidated so if you move house, let them know immediately.
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Are you keeping your old mobile number? If you port your existing number to the new contract you might be asked to send, in addition, the very first bill you received showing the original mobile number you were allocated.
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Use the Tart Alert as a reminder. The Tart Alert is this site's free text message/email reminder service; it's mainly to remind people before their credit card 0% period ends, but you can use it as a reminder to fill in your rebate form. Enter the rebate date and you'll be sent a free text message or email (your choice) six weeks beforehand.
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Consider another form of cashback. Regardless of whether cashback is officially offered, there's a possible additional amount. Simply sign-up for the phone via a cashback website.
These are special sites carrying paid links from retailers and if you click through them and get a product they're paid. Importantly, they then give you some of this cash. It's nowhere near as big a deal as cashback redemption but could mean an extra £20 or £30. Find out more in the Top Cashback Sites guide.
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The cashback deal's with the retailer, the tariff with the network. Even if it goes wrong you still keep the tariff with the network. Sadly cashback retailers can and do go bust; if they do, it'll be tough to recoup. Yet don't forget the networks encourage these deals, and if you believe you've been unfairly treated, a strong letter to the network asking it to step in may be worthwhile. If you do have cashback problems, always ensure you report the company to trading standards, and if you've been treated unfairly consider a small claims court action.
Quick Q&As;
What are my rights if my phone breaks?
All the usual consumer rights apply when you buy a mobile phone, ie, the phone must be of satisfactory quality and fit for purpose. (See the Consumer Rights guide for full details).
- Bought online? Buy online, or over the phone and you have a seven-day cooling-off period. Change your mind within this time and you can get a full refund.
- Phone broken or faulty? Remember here, the responsibility is with the retailer not the manufacturer, it must sort the problem for you. If the fault is minor it's reasonable to accept a repair. If not you're entitled to a refund, although the retailer can deduct an amount for the use you've already had.
How do I keep my number?
Transferring, or porting, your old mobile number is easy when you switch phone. All you need to do is get your PAC (Porting Authorisation Code) from your existing provider and give it your new one.
Most networks will ask you to do this before you buy the new phone but some will still do it after the new contract is set up.
Can I cancel my contract if my provider changes the terms?
This depends how big the alteration to the contract is and if you're at a considerable loss from the change. If the change is material then you could argue to cancel on this basis after giving notice.
However many contracts have a pricing term in them reserving the right to increase prices up to a reasonable threshold (5 - 10%).
