Top 5 Reasons your Business is Overspending on your Mobile Contracts

According to a recent study by Oxford Economics, businesses spend on average £1,500 on a standard 2 year mobile contract per employee. Add up how many employees you have and that could be a whole lot of investment. So the last thing you want is unexpected charges on your bill every month. But what exactly is causing your employees or yourself to overspend? We’ve narrowed down the top 5 reasons business are overspending on their mobile contracts and have a bit of advice as to how you can limit this in the future.

Each mobile phone contract has a monthly allowance that includes calls, texts and data. If this inclusive monthly allowance is exceeded you will be charged out of bundle rates that could be expensive, especially if this is a regular occurrence. Be careful you are aware of what exactly is included in your monthly allowance as unexpected charges can occur from calling numbers that aren’t covered in your allowance or sending picture messages (MMS).

1. Picture Messages

When sending messages, these can sometimes be converted into Multimedia Messages (MMS) and this can occur when:

  • Your message includes an emoticon or emoji
  • Your message is sent to an email address instead of a phone number
  • You’re sending a group text message
  • Your text exceeds the character limit; different for different phones
  • Your message has a subject line

How to limit this:
Rather than sending these messages as a text, try using apps that allow you to communicate via 4G or Wifi. Apps such as Facebook Messenger, WhatsApp and Snapchat enable you to send picture messages via your inclusive data.

2. Directory Enquiry Calls

Calls to 118 118 (the most commonly used directory enquiry number) cost £4.49 per call plus £4.49 per minute (minimum 60 second charge applies). So, that’s a minimum of £8.98 for a single call.

How to limit this:
Use your inclusive data and try Google first. If your 3G/4G signal is poor and you can’t access the internet, then try 0800 118 3733, a free alternative. And remember, whatever service you use, never allow the operator to transfer you, simply dial the number from the free text.

3. Non-geographic Calls

Non-geographic calls are typically those made to prefixes 05, 08 and 09 and tend to vary in cost. Be aware of the cost to call before you dial the number.

How to limit this:
The website SayNoTo0870 provides a list of alternative 01/02/03 numbers or free 0800 and 0808 numbers that can be used instead.

4. Internet & Data Overages

Probably the most common cause of excessive overspending on business mobile contracts. We use the internet today for everything and adults typically spend 4+ hours a day browsing the web whether that’s on social media, reading and answering emails, playing online games or shopping. This can really add up and cause you to exceed your inclusive monthly data allowance. Once you exceed this you will be charges out of bundle data rates which can vary depending on the network provider.

How to limit this:
To reduce the data usage on your mobile each month:

  • Set caps on your spending to prevent you going over each month
  • Use WIFI as much as possible for streaming movies, playing music etc
  • Ensure Apps are closed down and are not running in the background
  • Check that Wifi Assist is switched off on the phone

5. Premium Rate Services & Text-In Competitions 

Premium rate services tend to be 4,5 or 6 digit numbers you can call or text, like entering a TV competition, voting on a TV show or automatic alerts like football scores.

How to limit this:
If there are premium rate texts charges on your mobile phone bill, you can use the Phone-paid Service Authority to establish what they are.  The service will advise you of the company responsible for the charges and how to stop them.

Dedicated Account Management

By limiting your chances of overspending businesses could save a huge amount every year. For many business owners, keeping track of overspend is a lot of work. Therefore invest in a company that has a team of account managers that keep an eye on your spending every month. They will contact you if there are any unexpected charges on your bill or if you have exceeded your inclusive monthly allowance and advice you of the best options to ensure you don’t have any unexpected charges at the end of the month.

If you think you are overspending on your current mobile contract, please get in touch with a team of our team for a no obligation quote and see how much you could save yourself.

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Read about how we helped Ulster Carpets save money on their roaming costs.