The landscape of the mobile phone market is set to alter dramatically in coming months as 6.5 million users consider switching from a mobile phone contract to a Pay As You Go (PAYG) option because of the economic climate.    

A further three quarters of a million people (723,000) say they are already in the process of switching, according to a report out today from Post Office® Telecoms.  

There are already more than 32.7 million PAYG users in the UK, making up 54 per cent of the population, and this recent study indicated it could increase to a possible market share of around 65 per cent.   

In recent months some Post Office branches have seen an increase in sales of mobile top ups of over 100 per cent and, as the UK’s second largest provider of the service, the network is bracing itself for a sharp increase in sales during 2009.     

Martin Moran, Post Office head of telecoms, said: “Clearly people are being mindful of their finances during difficult times, and taking control of their spending by switching to more manageable options for mobile phone costs.  

“59 per cent of people say that having a PAYG mobile allows better control of spending and in some Post Office branches we’re seeing record numbers of people topping up their mobile phone at the counter.    

“The Post Office also offers customers the option to pay many bills in cash, including our HomePhone and broadband services, which can help them control their spending in an easy and transparent way.  We’re preparing ourselves for an increase in use of these services as the financial crisis deepens.”   

According to one in five people PAYG is a good option if you have a bad credit rating, with 31 per cent of under-25s citing this as a reason to use PAYG.  The under-25s were also the wariest about signing a monthly contract (67 per cent).  

Regionally, mobile phone users in the South West were the most likely to switch from contracts to PAYG (40 per cent). 

The top reasons for topping up rather than signing up to a contract were: 

1. You only pay for what you use (69 per cent)
2. You have more control over you spending and won’t be saddled with bills you can’t afford (59.2 per cent)
3. You don’t feel the pressure of being tied into a contract (58 per cent)
4. You don’t need a good credit rating (21 per cent)
5. They are simpler to understand (15 per cent)

 

To find out more about Post Office E Top-Ups and the Post Office’s other telecoms services, which include HomePhone, Broadband, directory enquiries and International Phonecards, visit www.postoffice.co.uk or ask at any Post Office branch nationwide.  

To  find  out  more about Post Office and the Post Office’s other services and  products which include savings, Insurance and Travel money ,   visit http://www.quote-services.co.uk/ or ask at any Post Office branch nationwide

For further information please contact: 

3 Monkeys Communications Gemma Shaw/Helen Prowse    020 … Helen@3-monkeys.co.uk Gemmashaw@3-monkeys.co.uk

Post Office Ltd Hayley Fowell    020 … hayley.fowell@postoffice.co.uk

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Notes to Editors 

All stats unless otherwise stated obtained from research carried out by T-Poll among over 2,000 people aged 18+ in the UK.  All numbers are rounded to the nearest 1 per cent or 250,000) 

London/South East

• 47% of people in London and the South East use a PAYG phone
• 26% of people in London and the South East are considering switching to PAYG
• 59% of people in London and the South East believe PAYG means you have more control over your spending

 

South West

• 56% of people in the South West use a PAYG phone
• 35% of people in the South West are considering switching to PAYG (highest in UK)
• 52% of people in the South West believe PAYG means you have more control over your spending

 

Midlands

• 53% of people in the Midlands use a PAYG phone
• 23% of people in the Midlands are considering switching to PAYG
• 56% of people in the Midlands believe PAYG means you have more control over your spending

 

North West

• 54% of people in the North West use a PAYG phone
• 32% of people in the North West are considering switching to PAYG
• 63% of people in the North West believe PAYG means you have more control over your spending

 

Scotland

• 57% of people in Scotland use a PAYG phone
• 27% of people in Scotland are considering switching to PAYG
• 64% of people in Scotland believe PAYG means you have more control over your spending

 

Wales

• 61% of people in Wales use a PAYG phone
• 28% of people in Wales are considering switching to PAYG
• 58% of people in Wales believe PAYG means you have more control over your spending

 

Northern Ireland

• 64% of people in Northern Ireland use a PAYG phone (highest in UK)
• 22% of people in Northern Ireland are considering switching to PAYG
• 71% of people in Northern Ireland believe PAYG means you have more control over your spending (highest in UK)

 

East of England

• 57% of people in the East of England use a PAYG phone
• 31% of people in the East of England are considering switching to PAYG
• 56% of people in the East of England believe PAYG means you have more control over your spending

 

The Post Office offers a range of great value telephony products and services: 

E Top-ups

E Top-ups and E Vouchers for all mobile networks are available at all Post Office branches 

Phonecards

Post Office branches offer a range of great value domestic and international phonecards

Post Office Broadband and HomePhone

The new Post Office Broadband service was launched in October 2007 and offers customers a cash prepayment option, fast connection speeds, no rural surcharges and a range of great value packages, including bundles with the Post Office’s telephone service – HomePhone. 

Post Office 118855

Its directory enquiries service – 118855 – offers one of the most competitive prices on the market with all calls charged at a flat rate of 39.1p from a BT landline (no per minute charges).  Customers can get two searches per call and free text back to mobiles.

Tags: Mobile Phone, Pay as you go, Payg, post office

In recent times with money being tight, many mobile phone owners and especially parents of cell phone users have been weighing up the advantages as well as the disadvantages of paying their cell phone bills in advance through a “pay as you go” option instead of waiting for the unpleasant surprise of waiting till the end of the month to discover too which dramatic proportions it has arrived at.

Using cell phones for many people has become an expense that has long since ceased to be a worthwhile and justifiable expense and has become a considerable financial burden on the family, usually as a result of indiscriminate and irresponsible use of the mobile phone by one or more family members.

The social aspect of owning and using a mobile phone, especially amongst the youth of today, has gradually reached a stage where it has become a major problem for most UK parents to justify the costs involved. Many well meaning parents have succumbed to the pressure applied by the child or children to “keep up with the rest of the crowd” and have a mobile phone just like everybody else. They are also inclined to justify equipping their kids with a mobile phone for ease of contact, which can be very important in these times for many reasons. Yet their children are either unable or unwilling to grasp the fact that mobile phone conversations are very expensive and often unnecessary or far too long drawn out. This entire means that the parent is left to pay the bill, with the only guarantee that it won’t happen again is the promise that “It won’t happen again.” Not that quite a large number of adults are not susceptible to spending too much time and too much money on their mobile phones every month.

For that reason, pay as you go phones can be a pretty serious consideration for people who want to reduce their outgoings on mobile phone calls. However pay as you go can have its disadvantages and is not guaranteed to be a success. What is required is a lot of discipline, and not everybody has that gift at their disposal. To a rebel teenage mobile phone freak, placing some kind of restriction on the amount of time they can spend on their mobile phone is the equivalent to a breach of their rights as a citizen, or at least a member of the family. They may make no effort to ration the number of calls they make or SMS’s they send, and within a few days the pay as you go time has been used up. Then the dilemma is: do you leave your loved ones without the ability to make contact in an emergency or do you top up the phone card even more.

The hope is that you or your loved ones will adapt to the pay as you go option within the realisation that mobile telephone costs needs be taken into account. The act of restriction may be difficult to dish out, but it certainly is a very viable alternative to those who want to keep their mobile phone costs under control.

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For the best deals on mobiles visit http://www.compare-mobile.com/ who have 176,432 Deals from 32 retailers available on all the networks

Tags: Contract, Mobile Phone, Pay as you go, SMS

In recent times with money being tight, many mobile phone owners and especially parents of mobile phone users have been weighing up the advantages as well as the disadvantages of paying their mobile phone bills in advance through a “pay as you go” option instead of waiting for the unpleasant surprise of waiting till the end of the month to discover too which dramatic proportions it has arrived at. Using mobile phones for many people has become an expense that has long since ceased to be a worthwhile and justifiable expense and has become a considerable financial burden on the family, usually as a result of indiscriminate and irresponsible use of the mobile phone by one or more family members.

The social aspect of owning and using a mobile phone has gradually reached a stage where it has become a major problem for most UK parents to justify the costs involved. Many well meaning parents have succumbed to the pressure applied by the child or children to “keep up with the rest of the crowd” and have a mobile phone just like everybody else. They are also inclined to justify equipping their kids with a mobile phone for ease of contact, which can be very important in these times for many reasons. Yet their children are either unable or unwilling to grasp the fact that mobile phone conversations are very expensive and often unnecessary or far too long drawn out. This entire means that the parent is left to pay the bill, with the only guarantee that it won’t happen again is the promise that “It won’t happen again.” Not that quite a large number of adults are not susceptible to spending too much time and too much money on their mobile phones every month.

For that reason, pay as you go phones can be a pretty serious consideration for people who want to reduce their outgoings on mobile phone calls. However pay as you go can have its disadvantages and is not guaranteed to be a success. What is required is a lot of discipline, and not everybody has that gift at their disposal. To a rebel teenage mobile phone freak, placing some kind of restriction on the amount of time they can spend on their mobile phone is the equivalent to a breach of their rights as a citizen, or at least a member of the family. They may make no effort to ration the number of calls they make or SMS’s they send, and within a few days the pay as you go time has been used up. Then the dilemma is: do you leave your loved ones without the ability to make contact in an emergency or do you top up the phone card even more.

The hope is that you or your loved ones will adapt to the pay as you go option within the realisation that mobile telephone costs needs be taken into account. The act of restriction may be difficult to dish out, but it certainly is a very viable alternative to those who want to keep their mobile phone costs under control.

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For the best deals on mobiles visit http://www.compare-mobile.com/ who have 176,432 Deals from 32 retailers available on all the networks

Tags: Compare Mobile Phone, Contact, Mobile Phone, Pay as you go, Telecommunications

Sourced from
Pay as you go versus contract comes down to control versus flexibility.

Pay-as-you-go instills a certain discipline. You can load pre-paid amounts of money, usually in lots of £5, and know that you’re not going to receive a cardiac inducing bill at the end of the month. You’ve pre-paid, so you can’t overspend. Great for those with their own money on the line. No contract, no surprises.

Pay-as-you-go also helps those that think that they might be tracked by some thugs with crew-cut hair cuts, square jaws, dead eyes and sharp suits. Pay-as-you-go means you don’t have to reveal yourself. You can be a discreet mobile phone user. Also, you can give one of your family a mobile with a pre-paid card and fill it when required, making sure your sprog doesn’t accidentally ring the Australian speaking clock and leave the line open.

The big downside of being a Pay-as-you-go customer is of course that you might be halfway through a pompous monologue on the finer points of twitching, when your money runs out and you’re cut off.

contract is more flexible. Okay, it can be more expensive, not least because while your whispering sweet nothings into your loved one’s ear, the meter, as the London cabbies love to say, is running. But, you can exploit the network’s price plans, as they have dozens of price points to cater for you.

And, the networks like contract customers, because they provide recurring income on a monthly basis. They are a rich vein of wealth to tap, but to reward this, they offer sumptuous deals on the latest phones. The Pay-as-you-go range of mobiles can seem almost hand-me-down in comparison.

Ultimately, pay as you go versus contract is all about how much you use your mobile.

Tags: Compare Mobile Phones, Contract, Mobile Phone, Pay as you go, Telecommnications