Price rises · 3 min read
The loyalty penalty
Staying loyal to your network can cost you more. How the loyalty penalty works in mobile, and four simple ways to stop paying it.
Picture two people on the same network, same plan, same data. One joined last week. One has been there since 2019. Guess who pays more?
The short answer: the "loyalty penalty" is when long-standing customers pay more than new ones for the same thing. In mobile it creeps in through annual price rises, better deals saved for new joiners, and bills that don't drop once a phone is paid off. At Kindly there's one price for everyone and no annual price rises, however long you stay.
How do loyal mobile customers end up paying more?
- Prices go up every year while you're in contract. Most big networks build an April rise into their contracts, now written in pounds and pence.
- New customers get the deals. The offer that tempted you two years ago now goes to someone else.
- Out of contract, still paying the same. If your plan included a handset, you can keep paying for a phone you already own. Ofcom found that bundled out-of-contract mobile customers overpaid by £83m in 2020, compared with like-for-like SIM-only deals. That was down from £182m in 2018, after networks agreed to cut prices, but it's still a lot of money for doing nothing.
What happens when my mobile contract ends?
Your provider has to tell you. Since February 2020, Ofcom rules say they must send an end-of-contract notice between 10 and 40 days before your contract ends, by text, email or letter. It must show what you pay now, what you'll pay afterwards, and their best deals, including any only offered to new customers. Read it. It's the most useful message your network will ever send you.
How do I stop paying the loyalty penalty?
- Check your end date. Text INFO to 85075 for free and your network will reply with your contract details.
- Look at what new customers pay for the same plan. If it's less, ask for it, or move.
- Once your phone is paid off, make sure you're not still paying for it. A SIM-only plan is usually much cheaper.
- Choose a provider that doesn't do it, so you never have to check again.
Switching is easy now: text PAC to 65075 to keep your number, and the move happens within one working day.
Does Kindly charge loyal customers more?
No. On Kindly, someone who joined on day one pays the same as someone joining today. There are no annual price rises and no new-customer-only deals, and plans are 30-day rolling, so we have to keep earning your custom every month. Existing customers keep their price while they stay on their plan. And £1 a month from every personal SIM goes to good causes, built into the price.
Wondering whether you're paying the penalty? Upload your bill to [Bill Check](https://kindlymobile.co.uk/bill-check) and we'll show you, number by number. Or go straight to our plans.
FAQ
Is the loyalty penalty legal?
Generally, yes. Ofcom rules mean you must be told when your contract ends and what your best deals are, but networks can still charge existing customers more. That's why it pays to check.
Will Kindly raise my price for staying?
No. There's one price for everyone and no annual price rises.
What is INFO to 85075?
A free text service: send INFO to 85075 and your network replies with your contract end date and any early exit fee.
Do I need to wait until my contract ends to switch?
No, but you may have to pay an early exit fee. Text INFO to 85075 to see what it would be.
