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Three mistakes consumers make in mobile plans


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Smartphone plans changing the mobile landscape in Europe and North America

Surfersvillage Global Surf News, 2 October, 2012 : - - A new wave of smartphone plans is changing the mobile landscape in Europe and North America in 2012. In the United States, the changes are rather cautious – the new family plans of AT&T and Verizon are perhaps the biggest shift. The autumn iPhone plans of Sprint affiliates like Virgin and Boost are relatively aggressive for the US market, but lack the all-out aggression of some European offers like Iliad’s notorious 20 euro monthly plan in France. Apple’s big iPhone 5 launch may well trigger new pricing stratagems over the coming winter as carriers chase a shrinking pool of new smartphone subscribers, many of whom cannot spend $100 or more per month.

The European debut of a new iPhone application called Ratemizer casts some light on how Nordic consumers select iPhone plans – and the biggest mistakes they have made in their earlier choices. Ratemizer analyzes 12 months of billing data and tells consumers how much they could save in a year if they picked the optimal plan.

Perhaps the biggest surprise revealed by early Ratemizer data is that simply having a too small voice minute package is one ot the most common reasons for overpaying. Consumers seem to be good at estimating their average monthly minute usage – but they tend to underestimate how much the one or two peak months in the calendar year end up costing in penalty fees. Voice minute consumption during the peak months is often more than 100% of the baseline consumption – and the result is a couple of  bill shock months each year. Switching to a bigger minute bucket can seem wasteful for most of the year. Many consumers thus end up lowballing their plans.

Another surprise is that multiple operators typically offer a plan that would yield at least 75% of the savings that the cheapest plan of the cheapest operator yields. Consumers tend to put off switching their mobile plans because jumping to a new carrier seems like a hassle. In reality, picking the optimal plan of the current operator often results in substantial savings.

Read the full article at Forbres

Source: Forbes

Author: The Editors

Tags: iPhone 5, Mobile Plans, Smartphones

Consumer: Surfersvillage

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