Ofcom reveals smartphone users choosing longer contracts

Increasing numbers of mobile customers are opting for either SIM-only deals or longer 24 month contracts according to Ofcom, in its The Consumer Experience 2009 report. 

The UK communications regulator's findings reflect the changing face of the UK mobile phone industry in which customers are buying more smartphones, and choosing longer contracts to reduce the upfront price they pay for what are still expensive devices.

During the third quarter of this year, 42% of mobile contracts were for at least two years, up from just 5% during 2008.

Meanwhile 20% of new contracts were for SIM cards, which consumers bought to switch their existing phones to a better value contract. 'Mobile call charges have continued to fall, in particular because of the increasing popularity of low-cost SIM-only contracts,' noted Ofcom.

Ofcom also found that 'growing numbers of us are looking to save money by taking our services in bundles or opting for cheaper mobile phone deals.'

According to Ofcom, '35% of consumers now take discounted bundles – up from 30% the previous year.' Discounted bundles offer customers money off if they source their mobile and fixed-line phones, broadband and pay TV from the same supplier. In some cases consumers with more than one supplier could save up to £140 per year if they selected the right bundle, Ofcom found.

Ofcom claimed that UK consumers are better off when it comes to 'telecoms deals' than in the US or many countries in Europe.

During 2009 the popularity of mobile phones has grown so that 'homes are now more likely to have a mobile than fixed line,' Ofcom said.