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Staff Reporter
October 7, 2022
Monthly contracts will dominate over the next decade
Around 19 million subscribers are expected to abandon Pay As You Go and contract tariffs in favour of Pay Monthly tariffs over the next decade, says comparison site Uswitch.
Uswitch reckons monthly contracts will attract more than 17 million customers in the next ten years while PAYG tariffs will drop by 1.78 million subscriptions.
The study reveals that the increase in pay monthly tariffs and decline in PAYG subscriptions is expected to be consistent throughout the next ten years.
Customers will also be attracted by low-cost deals or devices, promotional bundles or innovative hardware.
The study highlighted the gap between pay monthly contracts and PAYG tariffs would increase from 8.88 pc in 2012 to more than 93pc in 2032.
Uswitch mobiles analyst Catherine Hiley says people are finding monthly contracts more attractive as they can include smartphones inclusive of data, calls and texts, and rewards.
“Many people are also in favour of 30-day contracts, which give more flexibility to the user. A month-long contract provides you with the freedom of a PAYG SIM, without tying you down long-term for 12 or 24-month contracts.