A MAJOR mobile provider with 5million customers is to axe its cheap tariffs, leaving many facing higher bills.
Tesco Mobile is bringing in big changes for its more than 1million pay-as-you-go (PAYG) customers.
1
The provider is to axe its Lite, Rocket and Triple Credit tariffs, with customers to be moved to a standard Essentials plan.
The shake-up will leave some customers out of pocket, as the Essentials plan charges more for calls and texts than the current Lite tariff.
However, rates are the same as the Rocket and Triple Credit tariffs.
These are the charges on Tesco’s Essential plan:
- Calls to standard UK numbers – 25p a minute
- Texts to standard UK numbers – 10p a message
- Data – 10p per mb
- Voicemail – 15p a minute
- Picture messaging – 55p a message
Charges for calls on the old Lite plan were just 8p a minute, while texts were 4p a minute – meaning customers who were on this plan will be forced to pay over 200% more.
The change is coming ahead of a 3G switch-off at the end of the year.
A Tesco Mobile spokesperson said: “Our new Pay as you go Essentials tariff offers everything you need in a simple 30-day bundle of data, minutes and texts.
“Bundles start from just £5, with unlimited calls and texts on every bundle from £10 and up. We’re always here to help, so if you have any questions, drop in to your nearest Tesco Mobile Phone Shop to speak to our friendly colleagues.”
I’m on one of the tariffs being axed – what should I do?
The change began at the end of September, but customers are to be moved over to the new plan in a phased process over the next few weeks and months.
If you’re being moved to the standard plan, you’ll be notified by Tesco Mobile 30 days beforehand.
Tesco will initially give you a free 30-day bundle of calls, texts and data based on your average usage from the previous three months.
After 30 days, you’ll automatically start paying the standard Essentials tariff rates.
Alternatively, you could switch to one of Tesco’s bundle deals. For example, its cheapest £5 Essentials Bundle offers 500MB of data, 500 minutes of calls, and 500 texts.
Its £10 bundle offers 10GB of data and unlimited texts and minutes, while its most expensive £30 bundle offers 100GB and unlimited texts and minutes.
According to MoneySavingExpert.com, it’s worth sticking with the standard PAYG rates if you rarely use your phone, or use it just for emergencies.
The site says Tesco is the cheapest provider using O2, but if you’re happy changing networks you could get a better deal.
Talk Home – which uses EE’s signal – offers rates from as little as 1p/Mb, 1p/minute and 1p/text, for example.
Its experts also recommend shopping around for better value if you normally buy a bundle, with providers including Lebara and Sky Mobile offering cheaper one-month rolling contract Sims.
How to save on your mobile phone bill
NOT happy with your current mobile phone deal?
If you’re outside the minimum term of your contract then you won’t need to pay a cancellation fee – and you might be able to find a cheaper deal elsewhere.
But don’t just switch contracts because the price is cheaper than what you’re currently paying.
Take a look at how many minutes and texts, as well as how much data you’re using, to find out which deal is best for you.
For example, if you’re a heavy internet user it’s worth finding a deal that accommodates this so you don’t end up spending extra on bundles or add-ons each month.
Also note that if you’re still in your contract period, you might be charged an exit fee.
Ready to look elsewhere? Pay-as-you-go deals are better for people who don’t regularly use their phone, while monthly contracts usually work out cheaper for those who do.
It’s worth using comparison websites, such as MoneySupermarket and uSwitch.com, to compare tariffs and phone prices.
Billmonitor also matches buyers to the best pay-monthly deal based on their previous three months of bills.
It only works if you’re a customer of EE, O2, Three, Vodafone or Tesco Mobile and you’ll need to log in with your online account details.
There’s also MobilePhoneChecker, which has a bill monitoring feature that recommends a tariff based on your monthly usage.
If you’re happy with your provider then it might be worth using your research to haggle a better deal.
Do you have a money problem that needs sorting? Get in touch by emailing money-sm@news.co.uk.
Plus, you can join our Sun Money Chats and Tips Facebook group to share your tips and stories
