Flight to value poses new threat to telecoms industry

Money-savvy consumers are cutting the cost of using mobile phones, saving themselves thousands of pounds - and business phone users can benefit, too.

That’s according to Russ Wheeler, founder of online phone tariff comparison website tariffsupermarket.com.

Wheeler says Nokia’s prediction of a 10 percent global decline in the mobile phone market is down to people seeking out better deals, and holding on to their old handsets in exchange for cash rewards.

“If you keep your old handset at the end of a contract rather than upgrading, most providers offer up to £150 credit on your account, bringing down line rental,” adds Wheeler.

“So if a company has 50 handsets and only upgrades 10, they will save £6,000.

“We are entering an era of good value – people are wising up to the best deals better than ever before.”

Even better news for phone users is they can take their old handsets and SIM cards to tariffsupermarket.com and then snap up the best tarrifs.

“What we do is cut out the middle man, taking people directly to the best deals on the market and helping to save them money,” says Wheeler.

He is so confident the comparison formula will work in the new ‘good value’ era that tariffsupermarket.com is planning extensive expansion, a recruitment drive and a country-wide publicity campaign in the next few months.

“The recession is going to be tough – but at least it will mean consumers get the best deals out there, and save themselves some valuable cash.”