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Money Weekly Home > Mobile phone charges
Call waiting
by
Sarah Modlock
5 April 2005
A quick puzzle for you. What is small and getting smaller, can lead to the start of a romance or the end of a marriage and could even save your life? Here's a clue: you have almost certainly got one. The answer can only be a mobile phone. In the UK we love them so much that they outnumber the population.
Globally, mobile phone sales passed 167 million last year, according to a report from analysts Gartner who estimate there will be two billion handsets in use worldwide by the end of this year. And when we are not shouting our whereabouts down the line to loved ones, we are texting like demons. Each year sees an increase in the number of text messages we send. With a total of 26 billion tapped-in last year and no signs of a slow-down, will future generations of humans evolve with short, pointy thumbs?
Of course with this tiny technology comes a mountain of research about how it affects us. The usual things like your car will explode if you use your phone at the petrol pump and your social life will be over if you lose your phone. The petrol station warning could be an urban myth according to Dr Adam Burgess of the University of Kent. He says it's much more likely that static electricity from your body could spark an inferno. So leave the nylon catsuit at home next time you fill up.
Far more worrying is the loss of social life. When my SIM card was wiped in a freak security code accident last year, I sent out one of those pathetic e-mails offering friends the chance to send me their numbers or lose me forever. Thankfully they all obliged but there were a couple of interesting casualties who were lost along with my only means of contacting them. Help is at hand from the Mobile Equipment National Database which lets you register the unique ID number of your phone so it can be returned to you in the event of it being lost or stolen. And the Memory Master service from Carphone Warehouse offers the opportunity to transfer phone numbers from one SIM card to another for back-up purposes.
Numbers game
But perhaps the biggest danger our mobile phone presents is the bill, particularly if you use it abroad. Ouch. The good news is that an ongoing price war between providers should provide plenty of choice. New entrants such as easyMobile and Tesco aim to make life interesting for the big players. There are certainly savings to be made but picking the wrong tariff could cost you £100 extra a year according to Which? The organisation's independent website www.switchwithwhich.co.uk, compares more than 300 tariffs updated every month to help you to switch.
Prepay tariffs - where you buy the phone and top up the credit - are ideal if you want a mobile only for emergencies or to receive calls. They're also handy for people who want to manage their call costs and are popular with parents who want their children to have a mobile without a huge bill. Pay as you go deals are evolving quickly. Fresh and Virgin both let you pay by direct debit so you don't have to keep topping up. But you won't get the same exotic choice of handsets and what you do get could cost more because it is not being subsidised by a contract. As a rule of thumb, Which? recommends that if your bill is more than £15 a month and you use your phone more than three minutes a day, you might save money with a contract. Its research shows that almost 10 million prepay users would be better off on a contract.
All contract tariffs include line rental, a fixed monthly fee that can range from £5 to well over £50. Contract charges usually cover the costs of a certain number of 'free' minutes or texts but it is essential to make sure that you will really use what you are paying for, otherwise you could be better off on a different tariff. In the past, networks have secured our custom with free handsets if you sign up for a 12-month period but now some sneaky providers want to lock you in for 18 months. If you do decide to switch then look out for new packages designed to help you jump ship and save money. One example out this week is Virgin Mobile's 'Line Rental Rescue Kit' where customers of other networks who have had their contract for more than 12 months and don't want to upgrade the phone, can simply switch to Virgin Mobile and buy low-cost monthly airtime bundles.
To keep saving, review how much you use your phone, when you make calls, how often you text and whether you plan to take your phone abroad. Then pick the provider which offers the best deal on everything you need plus a host of luscious extras. Some people are easily pleased. My friend Andrew was delighted with his free 'fake Wookie fur' phone case sent by Orange as part of their Star Wars promotion. And I know lots of people who could make good use of the 'Dialling Under the Influence' service where you text certain numbers which are then blocked until 6am so you cannot 'drink and dial' your ex on a night out. It's currently only available in Australia but hopefully Virgin will bring it here soon.
Finally, once you have upgraded to a slinky new model, put your old handset to good use via a recycling scheme. Simply pick up an envelope in Vodafone, Tesco, T-Mobile, Argos, Comet or Body Shop stores and post it off to a new life to benefit charities and the environment. Now that really is a good call.
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