US Edition 
Mobile customers 'overpay by £5.4bn per year'
Seven in 10 mobile customers could save £159 each year on average by switching to a contract that better suits their needs
Mobile phone customers are collectively overpaying by £5.42 billion per year by being on the wrong contract for their usage.
New research by consumer watchdog Which? has revealed that many mobile customers are either by paying for texts, minutes and data they do not use, or paying extra charges because their phone package is too small.
Seven in 10 (72 per cent) mobile customers could save £159 each year on average by switching to a contract that better suits their needs, according to Which?, with three-quarters (77 per cent) able to save at least £50 a year.
Nearly half (42 per cent) of people with a mobile phone contract think that there is a better value tariff out there for them. However, Ofcom research shows switching levels are low, with 48 per cent of people never having switched supplier.
“Mobile phone companies must do more to help people get the best deal, making switching hassle free and ensuring that pricing is transparent," said Which? executive director Richard Lloyd.
"If we don’t see mobile firms making voluntary improvements then we will ask the regulator Ofcom to step in.”
Which? is calling on mobile phone companies to unlock handsets automatically for free, notify customers of the best deals for them at least a month before the end of their contract, and show the monthly cost of the handset separately from the service charge.
It also wants Ofcom to introduce a system where the provider gaining the new business is responsible for the switch, to make the process easier for consumers.
Responding to the report, an Ofcom spokesperson said that the regulator's priority is to ensure that communications markets work well for consumers.
"The UK mobile industry is one of the most competitive in Europe; recent Ofcom research showed average prices in the UK are the cheapest in Europe, 27 per cent less than the next cheapest country," he said.
"We want consumers to take advantage of competition in the market and shop around to ensure they choose the service which best meets their needs and budgets. To support them, we have prioritised work to make switching easier and to make sure consumers have clear, transparent information to help them make informed choices."
Graham Stapleton, CEO of Carphone Warehouse UK and Ireland, said that while it is important to make customers aware of potential savings, it is also important not to overwhelm them with options.
Carphone Warehouse offers a service called Pin Point, that allows customers to compare thousands of mobile phone deals, and narrow down their options based on their personal needs.
"It allows customers to not only find the personalised recommendation that they need, but to also ensure that their tariff is future-proofed so that they will continue to get the best value for money as their needs change," said Stapleton.