O2’s new tariff is a MASSIVE shake-up for customers – and it could cut bills too
MOBILE phone network 02 is launching a new range of tariffs which lets customers chop and change their monthly bills depending on their expected usage.
The shake-up could make a massive difference to millions of mobile users who are locked into deals where they are paying for more than they use.
The new tariffs, which are only available to new or upgrading customers, will be available from tomorrow - the same day as the iPhone X launches.
So, customers locked into deals will still have to wait until the end of their contract to take advantage of them.
In the past, customers have been limited to just upgrading, so that they get more call, text and data allowance each month. This must be done in person or via telephone.
But customers on the new flexible deal will be able to switch their tariff once a month via the 02 app, in store or over the phone.
They can also opt to downgrade their bills if they want to use less and pay less for that particular month.
The full details of the tariffs will be revealed tomorrow.
The mobile firm claims that a customer paying £41 a month for 50GB of data can drop to pay £19 a month, with their allowance falling accordingly. This would add up to a saving of £22 a month or £264 a year.
SIMPLE SAVING 'How I saved £150 a year off my mobile bill - and I didn't even need to pick up the phone'
O2 said that it believes customers should be able to have the choice as shoppers do when they decide to go to Lidl or Waitrose.
The lack of flexibility is an issue in the mobile industry because two-year contracts are considered normal when it comes to buying high-end handsets.
O2 already lets customers pay off their handset bill and contract separately, as does Sky Mobile and GiffGaff.
The news comes after Citizens Advice claimed that mobile phone firms are overcharging customers by up to £450 a year.
The charity found that customers of Vodafone, EE and Three who decide to stay on the same plan after their fixed deal ends are paying an extra £22 a month.
HOW TO CUT YOUR MOBILE BILL
FIRSTLY, decide if you’re happy with your current deal and whether you want a new deal or handset - or both.
If you’re outside the minimum term of your contract then you can leave penalty free - and you might be able to find a cheaper deal elsewhere.
Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.
The best way to find a new deal is by checking comparison websites, such as MoneySupermarket and uSwitch.com, which compare tariffs and handset prices.
It’s also worth trying Billmonitor, it matches buyers to the best pay-monthly deal based on their previous three months of bills.
It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.
MobilePhoneChecker has a bill monitoring feature that recommends a tariff based on your monthly usage.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
MORE ON BILLS
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