When buying or upgrading to a new smartphone, you’ll need to have an internet tariff or an “inclusive data allowance” which goes with your phone. This is because almost all of the functionality in a modern smartphone will require an internet tariff to work properly, with the exception of making phone calls and sending text messages. Sending e-mails, browsing the web, using Facebook and Twitter, viewing maps and watching YouTube videos are examples of activities which will use up data.

The major networks offer a range of tariffs with a choice of data limits. Typically you’ll get 500MB or 1GB each month but it really depends on the tariff. Some tariffs offer all-you-can-eat data with no download limits whereas other tariffs offer data allowances as low as 100MB per month.

There’s a great deal of confusion about what figures such as 500MB, 1GB and all-you-can-eat actually mean in the real world. In this article, we want to reduce this confusion. We’ll outline exactly what you can do with your download allowance, how you can avoid going over your download limit and how to decide how much data you’ll need.

photo: Aitor Escauriaza

What’s the inclusive data allowance or download limit on my mobile contract?

The standard data allowance in the industry is 500MB per month – this is what will be included on most mobile phone contracts. There are some notable exceptions: Three’s ‘The One Plan’ (from £25/month) and T-Mobile’s ‘The Full Monty’ (from £36/month) both come with unlimited internet and no download limits. With either of these tariffs, there is no need to worry about how much data you’re using and the risk of incurring extra charges.

On the other end of the scale, networks such as O2, Orange and Vodafone offer plans with just 100MB or 250MB per month – these are only really suited for light usage.

Please select your chosen tariff to view more information on the inclusive data allowance and what it corresponds to:

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For Pay Monthly tariffs, download allowances are as follows:

Please note that these are the typical download limits found on tariffs available today. If you’re on an older tariff which is no longer available, your download limit or fair usage limit may be different.

For more information on the download allowance included with your specific tariff, consult your mobile network’s webpage: 3 (Three), O2, Orange, Tesco Mobile, T-Mobile or Vodafone. Alternatively, use the form above to select your network and tariff.

What is the relationship between KB, MB and GB?

There are 1,000 kilobytes (KB) in 1 megabyte (MB) and 1,000 megabytes in 1 gigabyte (GB).

This means that if you see a tariff advertising a 1GB limit (1000MB), the limit is twice that of a tariff advertising a 500MB limit.

You may occasional come across other terms such as a terabyte and mebibyte. These terms are rarely used in the mobile industry but Wikipedia has a good explanation in case you ever come across them.

What activities will count towards my download limit?

Most activities on a modern smartphone will consume data – the exceptions being making a phone call and sending a text messages.

Activities which consume data include browsing the web, reading and sending e-mails, browsing Facebook and Twitter, sharing photos, downloading applications, downloading music, listening to online radio and watching videos on YouTube. Voice-over-IP and instant messaging applications such as Skype, BlackBerry Messenger, WhatsApp, Google Talk and Facebook Messenger will also consume data when in use.

It’s worth noting that your phone may consume data in the background even when you’re not using it. For example, the weather widget on your homescreen will update itself periodically by download the latest forecast from the internet. Your e-mail application will also check for new messages in the background periodically.

Is 500MB enough for day-to-day use?

Yes. Generally we think 500MB is enough for day-to-day use providing that you don’t use your smartphone for data-intensive things such as:

• downloading or streaming video/music (for example applications such as YouTube, Spotify, Last.fm, TVCatchup, BBC iPlayer).
• tethering your phone to a computer (using the phone’s 3G connection as a mobile broadband device)
• using P2P applications on your phone (e.g. BitTorrent)
• using voice-over-IP applications (e.g. Skype, Google Talk)

The typical smartphone user will consume about 250MB of data each month. Typically we recommend a plan with at least 500MB per month of inclusive internet as this provides a buffer against additional costs.

For heavy users, data consumption could be substantially higher than 250MB (perhaps upwards of 1GB) so plans such as The One Plan and The Full Monty would give peace of mind against incurring additional charges for excess data consumption.

What do 500MB and 1GB actually correspond to in real life usage? For example, how many webpages, emails or videos is this?

It’s hard to give an exact figure – for example every webpage will differ in size depending on the amount of text, images and other multimedia content on it. Also, whilst most e-mail messages are typically small in size, they can be fairly large if they include attachments such as photographs. In the following table, we’ve taken “typical” values as provided by O2:

Source of estimates: O2 [1, 2]. Our testing found a Skype mobile voice call consumes around 0.55MB/minute (70kbps). Skype video call uses 4MB/minute (500kbps). Online radio calculation assumes 128kbps bitrate. Average size of app is 6.1MB (based on top 20 free Android apps).

Note that we’ve listed what 500MB and 1GB correspond to: this is not a shopping list of what you can download with a 500MB allowance. In other words, viewing 5000 web pages, watching 1 hour of video or downloading 80 apps would use up the entirety of a 500MB allowance (a 500MB allowance does not allow you to do both in the same month). Realistically, you’ll do a bit of everything in a month and so each activity would contribute towards your data usage.

To see the download limits for your chosen tariff and what they correspond to, please select your chosen tariff:

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Where can I get a smartphone tariff and how much data would it come with?

All of the major networks offer tariffs which are suitable for use with a smartphone. You can either choose a tariff which comes with an inclusive smartphone or a tariff which only provides the airtime (a SIM-only tariff).

Select a tariff for more information and to see which phones are available:
Three (500MB – 1GB) The One Plan (no download limit, info) Text Plans Talk Plans iPhone iPhone 4S SIM Only	O2 (100MB – 1GB) Pay Monthly iPhone Blackberry SIM Only (Simplicity)	Orange (100MB – 1GB) Dolphin Panther iPhone SIM Only	T-Mobile (100MB – 1.5GB) The Full Monty (no download limit) Pay Monthly iPhone SIM Only	Vodafone (250MB – 1GB) Pay Monthly iPhone SIM Only

For a comparison of SIM-only smartphone tariffs see our guide to the best value SIM-only tariffs.

What are the charges for exceeding the monthly download allowance?

If you exceed your download allowance in a given month, you may subject to some additional charges:

• Three: None on The One Plan; 10p/MB on other Pay Monthly tariffs; 11p/MB on Pay As You Go
• O2 & Orange: £1/day (£2/day on Orange Pay As You Go)
• T-Mobile: No charges but your internet usage is restricted
• Vodafone: £5 per 250MB on Pay Monthly; £1 per 25MB on Pay As You Go

I’m worried about incurring extra charges for exceeding my download limit. Are there any tariffs with no download limits?

Yes. If you enjoy downloading applications, listening to music or watching videos on your smartphone, you should opt for a tariff with no download limits. An unlimited data tariff is often comparable in price to a 500MB tariff andwould additionally allow you to connect an iPad, iPod Touch or laptop to the internet through tethering.

The most well-known unlimited internet tariff is Three’s “The One Plan”. It has no download limits so you’ll be able to use your smartphone to your heart’s content without worrying about any extra charges. The One Plan features all-you-can-eat data and even allows you to connect your phone to a computer and use it as a modem. It’s available either as a traditional mobile phone contract (from £25/month with an inclusive phone) or as a SIM-only contract (from £25/month without an inclusive phone; airtime only).

You’ll get a monthly allowance of 2000 minutes, 5000 Three-to-Three minutes, 5000 texts, all-you-can-eat data (no download limits) and free tethering included.

• Apple iPhone 4 (8GB) with no download limits - £30/month on The One Plan (£99 upfront charge)
• Apple iPhone 4S (16GB) with no download limits - £35/month on The One Plan (£99 upfront charge)
• Apple iPhone 4S (32GB) with no download limits - £35/month on The One Plan (£149 upfront charge)
• Apple iPhone 3G S (8GB) with no download limits - £30/month on The One Plan (free handset)
• Samsung Galaxy S II with no download limits - £35/month on The One Plan
• Nokia Lumia 800 with no download limits - £37/month on The One Plan
• Blackberry Bold 9900 with no download limits - £40/month on The One Plan
• SIM Card with no download limits - £25/month on The One Plan

We’ve got a in-depth review of “all you can eat” data on The One Plan. Note that Three’s “Talk” and “Text” Pay Monthly tariffs still feature download limits.

Another tariff with no download limits is T-Mobile’s “The Full Monty”. The offering is very similar to that of The One Plan – you get 2,000 minutes, unlimited texts and unlimited internet starting from £36/month. The Full Monty is only available on a 24 month contract (The One Plan is available on a 1 month SIM-only contract). We’ve got a side-by-side comparison of The Full Monty VS The One Plan.

Do tariffs with unlimited internet cost more than tariffs with download limits?

No. In fact, tariffs with unlimited internet often work out to be similar in price to those with download limits. Three offers the 16GB iPhone 4S on The One Plan for £35/month plus £99 upfront. This comes with unlimited internet as well and is comparable in cost to a tariff with 500MB internet elsewhere. T-Mobile also offers a similar deal for £36/month plus £100 upfront. We think it’s worth checking out Three and T-Mobile’s tariffs given the peace of mind offered by unlimited internet and the additional minutes included with the tariff.

I’m thinking about using tethering. How much data will I need?

Tethering means connecting your mobile phone to a PC or laptop as a modem and sharing your phone’s 3G mobile broadband service. This includes USB tethering and tethering via the iPhone & Android personal hotspot features. We’ve got a detailed guide to tethering which outlines how to use tethering and how much data you’ll need. Three’s “The One Plan” and T-Mobile’s “The Full Monty” come with unlimited internet and free tethering: on other networks you’ll need to pay extra for tethering.

Can I use my download allowance abroad?

No. Your inclusive download allowance can only be used within the UK. If you go abroad, it’ll cost between £4/MB and £8/MB for data. If you’re going abroad, see our detailed guide to using your phone abroad and how you can turn off “data roaming”.

Does data transferred over a wi-fi network count towards the download limit?

No. Data transferred over a wi-fi network does not pass through your mobile operator and will not be counted towards your monthly download limit. For this reason, we recommend using a wi-fi network for all of your bandwidth-intensive activities such as listening to online radio, making calls over Skype and watching online video. Note that you may have a separate download limit associated with your home broadband connection.

Does listening to radio on my phone count towards my download allowance?

Yes, but only if the audio stream was transmitted over the phone’s data connection. If you listen to music through a radio application or a web browser, it’ll have been transferred over the data connection and will count towards your download limit. Meanwhile, if you’re listening to a radio station broadcast over FM, it won’t count towards your download allowance. So if you stick to your phone’s built-in “FM Radio” feature you’ll be fine.

How do I find out how much data I currently use?

The best indication of how much data you use is to find out from your mobile network. You can often find this information by logging in to your mobile network’s website:

• Three
• O2
• Orange
• T-Mobile
• Vodafone

Note that the networks don’t always make it easy to obtain this information. For example, T-Mobile customers need to click on the “See what you’ve used since your last bill” button, choose the “Mobile data usage” tab, click on “Download this information”, load the data into an Excel spreadsheet and then SUM() over the “Volume” column to find their total data usage in kilobytes (KB). Your mileage may vary depending on how accessible your network makes this information. Drop us a comment below and let us know if you have any success.

Alternatively, you could look to see if your phone keeps track of how much data/internet you use. iPhone users can find their data usage stats under in the menu under Settings > General > Usage. Meanwhile, Android users should download the “3G Watchdog” application from Android Market. If you’ve got a phone with Android 4.0 (Ice Cream Sandwich) or later, there’s a Data Usage Monitor built in.

If you are changing phone, your current usage is not a good indicator of how much internet/data you’ll need with your new phone. Modern smartphones will use much more data than older feature phones and you should keep this in mind when purchasing a new smartphone on a contract.

Select a tariff for more information and to see which phones are available:
Three (500MB – 1GB) The One Plan (no download limit, info) Text Plans Talk Plans iPhone iPhone 4S SIM Only	O2 (100MB – 1GB) Pay Monthly iPhone Blackberry SIM Only (Simplicity)	Orange (100MB – 1GB) Dolphin Panther iPhone SIM Only	T-Mobile (100MB – 1.5GB) The Full Monty (no download limit) Pay Monthly iPhone SIM Only	Vodafone (250MB – 1GB) Pay Monthly iPhone SIM Only

Related posts:

1. Thoughts on mobile data: 500MB isn’t enough, download limits are too confusing
2. O2 scrapping unlimited internet; imposing 500MB/month fair usage cap
3. T-Mobile cuts “unlimited internet” fair usage limit to 500MB per month

February has only just begun and it’s already turned out to be an eventful one for the mobile industry here in the UK. In response to Three’s The One Plan which has offered unlimited all-you-can-eat data with inclusive tethering since the start of 2011, T-Mobile have just launched their new plan ‘The Full Monty’. Like The One Plan, The Full Monty also comes with unlimited data and free tethering. In this article, we’ll put the spotlight on both ‘The Full Monty’ and ‘The One Plan’. We’ll find out how they compare in terms of the prices of their tariffs, the phones available and the coverage and download speeds you can expect from them.

How do ‘The Full Monty’ and ‘The One Plan’ compare in terms of tariff features?

In terms of the basic features of The Full Monty and The One Plan, the two tariffs are incredibly similar. Both tariffs are essentially marketed as “unlimited everything” tariffs: pay a flat-rate each month and you shouldn’t have to worry about being any additional costs for spending too long on the phone or for browsing too many web pages. The One Plan offers greater choice and flexibility with their one-month rolling SIM only version of the tariff as well as featuring a selection of phones available from £25/month. The Full Monty starts from £36/month and is only available as a 24 month plan.

With regards to the number of minutes and texts, The Full Monty wins on a side-by-side comparison with The One Plan. Whilst The One Plan comes with 2,000 minutes and 5,000 texts, they are unlimited on The Full Monty. However, we feel that most people are unlikely to ever reach The One Plan’s limits of 2,000 minutes and 5,000 texts as it would correspond to making 67 minutes of outgoing phone calls and sending 167 text messages every day. For this reason, we feel the comparison is mainly academic and is unlikely to matter to end users.

* The approximate market share of T-Mobile is 19% whereas the approximate market share of Three is 7%. On the face of it, this would make unlimited calls to T-Mobile numbers a much better proposition than unlimited calls to Three numbers. However, the high number of inclusive minutes on both plans means this is unlikely to make very much difference.

What out-of-plan costs could be incurred on ‘The Full Monty’ and ‘The One Plan’?

Both plans cover the cost of calls, texts and browsing in the UK as well as tethering and voicemail. Other costs such as calls to special phone numbers, picture messages (MMS), calls and texts to international numbers and roaming (using your phone abroad) will be billed separately as “out of plan” costs. These “out of plan” costs compare as follows:

What handsets are available on ‘The Full Monty’ and ‘The One Plan’? How do their prices compare?

Both plans have a good selection of handsets, with The One Plan being cheaper in most cases. This is particularly significant for low-range and mid-range phones such as the Apple iPhone 3G S, Apple iPhone 4 or the HTC Wildfire S. The One Plan also stands out by offering a SIM only version of the tariff on a 30-day rolling contract for £25/month. This is ideal for anyone who already has a smartphone that they’re happy to keep, and allows you to get a plan with all-you-can-eat data without a 24 month commitment.

How do coverage and download speeds compare?

Both T-Mobile and Three provide good signal quality and coverage cross the UK. Whilst T-Mobile’s network uses both 2G and 3G technologies, Three’s network only uses third-generation 3G technologies. The benefit of Three’s approach is that you’ll experience faster and more reliable downloads in more places but the downside being that coverage is poorer. Three claims to offer coverage to 97% of the population whereas T-Mobile claims 99% of the UK population.

Both The Full Monty and The One Plan offer download speeds up to 21Mbit/s if your local mast is HSPA+ enabled and you have a HSPA+ capable devices. HSPA+ capable devices include the Samsung Galaxy S II. The Apple iPhone 4S supports HSPA+ speeds up to 14Mbit/s. Older 3G-capable devices with HSDPA technology can offer download speeds up to 7.2Mbit/s. These speeds are all theoretical limits however – typical download speeds are closer to 4Mbit/s on HSPA+ and 1.5Mbit/s on HSDPA.

Three and T-Mobile share many of their 3G masts through the MBNL joint venture so coverage quality should be similar for both networks across much of the UK (download speeds may differ however).

Are there download speed limits on ‘The Full Monty’?

T-Mobile previously stated on their Twitter account that The Full Monty had an artificial speed limit of 1Mbit/s. As of 4th February, T-Mobile said this was incorrect and that there are no download speed limits on ‘The Full Monty’ – you’ll get the maximum download speed possible.

I’m switching to either ‘The Full Monty’ or ‘The One Plan’. Can I keep my existing phone number?

Yes. You can keep your existing phone number when switching to either tariff – both of them will allow you to keep your existing phone number. In order to keep your existing phone number, you’ll need to ask your current mobile network for a PAC Code. This is a 9-digit code which will authorise T-Mobile or Three to transfer your current mobile phone number to your new mobile phone. The entire process of transferring your phone number takes no more than 24 hours. Our PAC Code Finder can walk you through the whole process.

Where can I find out more about ‘The Full Monty’ or ‘The One Plan’?

You can find out more about ‘The Full Monty’ at the T-Mobile website and more about ‘The One Plan’ at the Three website. We also have in-depth reviews of The Full Monty and The One Plan on this website.

Related posts:

1. T-Mobile launches “Full Monty” tariff with unlimited calls, texts, internet & free tethering
2. Three’s ‘The One Plan’ is UK’s best value Apple iPhone 4S deal
3. Three’s “One Plan”: 2000 minutes, 5000 texts, all-you-can-eat data & tethering from £25/month

O2′s low cost Pay As You Go network, Giffgaff, has today launched full support for BlackBerry devices and BBM services. Due to the way that BlackBerry devices (including the BlackBerry Bold, BlackBerry Curve and BlackBerry Torch) are designed, BlackBerry owners must have a subscription to the “BlackBerry Internet Service” (BIS) as well as a calling plan from their mobile operator in order to use the full functionality of the device. Giffgaff’s £3/month add-on provides access to the “BlackBerry Internet Service” and hence adds full support for BlackBerry features such as BlackBerry Messenger (BBM), web browsing and e-mail on Giffgaff.

How much does it cost to use my BlackBerry on Giffgaff?

In order to use the full functionality of your BlackBerry on Giffgaff, you’ll need to have one of the five Giffgaff Goodybags plus a £3/month BlackBerry add-on. Giffgaff currently offers a choice of 5 standard goodybags. With the addition of the £3/month BlackBerry add-on, the tariffs available to BlackBerry owners on Giffgaff are as follows:

If you exceeded your inclusive airtime allowance, you’ll pay Giffgaff’s standard Pay As You Go rates of 10p/minute and 6p per text message. Calls and texts to other Giffgaff members are free regardless of whether you’ve purchased a Goodybag. To qualify for free Giffgaff-to-Giffgaff calls and texts, you’ll need to have topped up in the last 3 months.

What is the BlackBerry Internet Service (BIS)?

The “Blackberry Internet Service” (BIS) is run by Research In Motion (the manufacturer of the BlackBerry). BIS provides the following functionality to BlackBerry devices:

• BlackBerry Messenger (BBM)
• internet access (web browsing)
• e-mail service (including push e-mail)
• converts e-mail attachments into a format which can be read by the Blackberry device
• push alerts (e.g. from installed applications)
• compresses all data before it is delivered to your phone. This makes your data allowance last longer but isn’t applicable to Giffgaff as the Goodybag tariffs all include “unlimited data”.

Without a subscription to the “Blackberry Internet Service” such as is provided by Giffgaff’s new add-on, you cannot use this functionality on your phone.

BlackBerry devices are unique in routing all of their internet traffic through a single service (BIS). Almost all other smartphones including the iPhone, Android and Windows Phone devices are able to connect to the internet directly through your mobile operator. The advantage of this approach is that tariffs tend to be cheaper, there is greater choice amongst mobile networks and there isn’t a single point of failure (BlackBerry devices across the UK experienced a prolonged outage in October due to a failure at BIS).

I’m a Giffgaff customer. How do I purchase the BlackBerry add-on?

When topping up at the Giffgaff website, there is an additional option to buy a BlackBerry add-on towards the bottom of the page. You must order this at the same time as you order your normal Goodybag: the Goodybag and the add-on must start at the same time. If you do not select the BlackBerry add-on, you will lose access to BlackBerry services.

Can I use a BlackBerry on Giffgaff without the BlackBerry add-on?

Yes, but only for calling and texting. Calls and texts are not routed through BIS so will work without the BlackBerry add-on.

It is possible to download alternative applications to your BlackBerry which will work without the BlackBerry add-on: for example the Opera web browser connects to the internet without the BIS service. You’ll need to set the correct APN settings on your BlackBerry to use these applications.

Can I use my BlackBerry abroad on Giffgaff?

Yes – BlackBerry data roaming will be free but limited to 10MB/day. See the Giffgaff pricing page for details of calling and texting costs whilst abroad.

How does the cost of using a BlackBerry on Giffgaff compare to using it on a Pay Monthly contract?

If you are using your Giffgaff SIM card in a BlackBerry device you already own, there are some significant savings to be had. For example, O2 charge £16.50/month for 300 minutes, unlimited texts, 500MB internet and BlackBerry services. Meanwhile, £13/month would buy 250 minutes, unlimited texts, unlimited internet and BlackBerry services on Giffgaff. This is a saving of £3.50/month or £42 per year.

If you are purchasing a new BlackBerry device, the total cost of ownership on Giffgaff and Pay Monthly is fairly similar, once we take the cost of the handset into account. We have a side-by-side price comparison for the BlackBerry Bold 9900.

What is coverage like on Giffgaff?

Giffgaff uses the O2 network as a “virtual network operator” – the coverage you’ll receive on giffgaff is identical to the coverage you’ll receive on O2. Hence, you can check Giffgaff coverage in your area by using the O2 coverage checker.

I’m moving my BlackBerry to Giffgaff. Can I keep my existing phone number?

Yes. You’ll need to ask your existing network for a PAC code and then to provide this to giffgaff. The entire process of transferring your phone number should take no more than 24 hours. Our PAC Code Finder tool provides a step-by-step guide to transferring your mobile number to giffgaff.

Where can I get a free Giffgaff SIM card?

You can order a free SIM card from the giffgaff website. This SIM card will work in all phones (BlackBerry or otherwise) as Giffgaff do not make any distinction between BlackBerry and non-BlackBerry SIM cards. To make use of BlackBerry features, you will need to purchase a BlackBerry add-on when activating your Goodybag.

Related posts:

1. Giffgaff Goodybags: Pay As You Go bundles on O2 virtual network from £5/month
2. Giffgaff offering 2p/minute calls and 1p texts with £5/month “labs” goodybag
3. T-Mobile offer unlimited internet whilst abroad for £15/month on BlackBerry tariffs

T-Mobile refreshed their tariff line-up earlier today. As well as introducing the new ‘The Full Monty’ tariff with unlimited calls, texts and internet from £41/month, the rest of their tariff line-up has also been updated. Tariffs now start from £7/month with 50 minutes and 250 texts.

Taking a leaf out of O2′s book, T-Mobile are now offering a choice of data plans: Basic (100MB per month), Standard (750MB per month), Extra (1.5GB per month) or Super (5GB per month).

What does T-Mobile’s new Pay Monthly line-up look like?

T-Mobile’s new Pay Monthly line-up features 7 tariffs ranging starting from 50 minutes and 250 texts per month and going all the way up to unlimited minutes and texts. With the 5 standard tariffs, you must choose one of the four data plans whereas the 2 ‘Full Monty’ tariffs come with unlimited data included.

For the 5 standard tariffs, the following data plans are available:

• Basic (100MB per month) – add £4/month
• Standard (750MB per month) – add £9/month. Also includes 3GB via BT Openzone wi-fi hotspots.
• Extra (1.5GB per month) – add £14/month. Also includes 3GB via BT Openzone wi-fi hotspots.

The monthly costs of the 24 month tariffs with different data plans are as follows:

These plans may not show up on the T-Mobile website automatically. On the price plans page, you’ll need to check the “All” box on the left hand side under the “Price range” heading.

A fourth data plan is also available by purchasing a Booster. The “Super” data plan costs £19/month and comes with 5GB per month plus 10GB at BT Openzone wi-fi hotspots. The total cost of your tariff once the “Super” data plan is included means that The Full Monty could provide better value.

Does T-Mobile have any 18 month plans available?

Yes. The standard plans (i.e. not The Full Monty) are also available on 18 month contracts. For 18 month plans, add £5/month to the monthly cost. The Full Monty is only available on a 24 month contract.

Which internet package should I choose? Basic, Standard, Extra or Super?

Unless you’re opting for The Full Monty which has unlimited internet, you’ll need to choose a data plan. T-Mobile offer a choice of 4 data plans:

• Basic (100MB per month). Costing £4/month, this is good for people who only use their smartphone for very occasional browsing and e-mailing. Be aware that downloading apps will use up a lot of data, so we would recommend against this data plan unless you have wi-fi at home for downloading and updating apps. The “typical” smartphone user in the UK uses around 250MB per month.
• Standard (750MB per month). This is T-Mobile’s standard data plan. Costing £9/month, you’ll get 750MB of data over 3G plus an additional 3GB at BT Openzone wi-fi hotspots. 750MB approximately corresponds to being able to browse around 7,500 basic webpages, sending 750,000 basic e-mails or downloading 150 MP3 files.
• Extra (1.5GB per month). Costing £14/month, T-Mobile’s “Extra” data plan gives you 1.5GB of 3G data and 3GB of data at BT Openzone wi-fi hotspots. This plan is good for heavy users and will give you around 15,000 basic webpages, 1.5 million e-mails and 300 MP3 files. Alternatively, you could listen to online radio for around 24 hours.
• Super (5GB per month). Available through a £19/month Booster, the “Super” data plan comes with 5GB of 3G data and 10GB of BT OpenZone wi-fi data. Given the high cost of adding the Super data plan, it’s worth investigating whether The Full Monty and unlimited data might provide better value. Three’s ‘The One Plan’ is also a good option for heavy data users.

We’ve got a detailed guide to the real-world meaning of download limits and what they mean in reality. If you choose not to add a data plan to your package, it’ll cost £1.02 per day to use the internet on your phone. For regular usage, particularly on a smartphone, it would be much better value to add a data plan.

Can I tether on T-Mobile’s new packages?

Yes, tethering is permitted on The Full Monty.

Tethering means connecting your mobile phone to a PC or laptop and using it as a modem to access a 3G mobile broadband service. It’s supported by the latest smartphones such as the Apple iPhone 4S and the Samsung Galaxy S II. By tethering over wi-fi, you’d be able to share your T-Mobile 3G connection with other wi-fi enabled devices such as your laptop, tablet, iPod Touch or e-book reader.

What is T-Mobile coverage like where I live?

You should use T-Mobile’s online coverage checker to ensure T-Mobile coverage is available where you live. As of October 2011, T-Mobile customers will also have access to Orange’s 2G and 3G network through the Everything Everywhere roaming arrangement.

I’m switching to T-Mobile. Can I keep my existing phone number?

Yes. You’ll need to ask your existing network for a PAC code which you should provide to T-Mobile once your new phone has arrived. They will handle the process of transferring your phone number which should take no more than 24 hours. Our PAC Code Finder tool provides a step-by-step guide to transferring your mobile number to T-Mobile.

Where can I find out more about T-Mobile’s new tariffs?

You can get find out more about T-Mobile’s new tariffs at the T-Mobile website.

Related posts:

1. O2 increase Pay Monthly contract prices, introduces new data plans and free tethering
2. SIM Cards and Data Plans for the Samsung Galaxy Tab, Android Tablets
3. What does 500MB or 1GB internet actually mean? Explaining mobile data limits

T-Mobile has announced their new tariff “The Full Monty”. Available as a 24-month contract on T-Mobile, “The Full Monty” starts from £36/month and comes with unlimited calls, unlimited texts and unlimited internet. Launched as a direct competitor to Three’s “The One Plan”, T-Mobile have taken a cue from Three with “The Full Monty” by including tethering with the new plan. This essentially means you’ll get a free mobile broadband service bundled with the plan.

Smartphones available with “The Full Monty” include the Apple iPhone 4S, Samsung Galaxy S II, HTC Sensation XE and BlackBerry Bold 9900.

What does “The Full Monty” include?

The “Full Monty” is intended to be T-Mobile’s flagship “unlimited everything” tariff and is intended to be a direct competitor to Three’s “The One Plan”. For a flat monthly fee, the tariff includes:

• 2,000 minutes (£36/month) OR unlimited minutes (from £41/month)
• Unlimited calls to other T-Mobile customers
• Unlimited texts
• Unlimited internet with no download limits
• Tethering & wi-fi hotspot (free mobile broadband for your laptop, etc.)
• Unlimited wi-fi at BT Openzone hotspots (excluding Olympic Games sites)

“The Full Monty” is only available as a 24-month contract and is not available as a 1 month rolling SIM-only plan. If you already own your own smartphone which you’re happy to keep, Three’s £25/month SIM-only plan could be a more suitable option.

How much does “The Full Monty” cost?

“The Full Monty” starts from £36/month, but the exact cost will depend on the smartphone that you choose. Key smartphones being offered on the plan include:

How does “The Full Monty” compare to Three’s “The One Plan”?

“The Full Monty” is incredibly similar to Three’s “The One Plan” which is also targeted at the “unlimited everything” market. Whilst “The One Plan” comes with 2,000 minutes and 5,000 texts rather than both being “unlimited”, the allowances are generally so large that it is incredibly difficult to ever exceed them. Key differences also include the availability of a SIM-only version of The One Plan.

Prices for key handsets compare as follows:

For a more in-depth comparison between the two tariffs, see our comparison of The Full Monty VS The One Plan.

Is there a fair usage limit on “The Full Monty”?

According to T-Mobile, there are no fair usage limits associated with “unlimited data” on “The Full Monty”.

Is tethering permitted on “The Full Monty”?

Yes. According to T-Mobile, “Customers … can use their mobile internet for whatever they like – including tethering (using a smartphone as an internet connection for a laptop or tablet), streaming and downloading”.

Being able to tether with “The Full Monty” means that you can share your phone’s 3G data connection with other devices including a laptop or tablet, an iPod Touch, an e-book reader or a games console. These devices do not need to feature 3G connectivity (for example you could connect a wi-fi only iPad to the internet by tethering). You’ll need a phone which supports the mobile wi-fi hotspot feature in order to use this feature. We’ve got a detailed guide on tethering and how to connect your other electronic devices.

Does “The Full Monty” include calls to 0800, 0845 and 0870 numbers?

No. Your inclusive minutes only include calls to geographical numbers (beginning with 01, 02 or 03) and calls to other UK mobile numbers (beginning with 07). This means calls to 0800, 0845 and 0870 numbers are not included and will cost 40p/minute. According to T-Mobile:

Minutes and texts unlimited allowance apply to all UK mobile networks, voicemail and numbers beginning with 01, 02, 03 (excluding Jersey, Guernsey and Isle of Man). Calls to 08 (including 0870) or 070 numbers are premium rate numbers and excluded from your inclusive allowances. Calls to 0800, 0808, 0845 and other 08 numbers cost 40p/min. See www.t-mobile.co.uk/help&support/priceplans.

What is T-Mobile coverage like where I live?

You should use T-Mobile’s online coverage checker to ensure T-Mobile coverage is available where you live. As of October 2011, T-Mobile customers will also have access to Orange’s 2G and 3G network through the Everything Everywhere roaming arrangement.

I’m a T-Mobile customer. Can I upgrade to “The Full Monty”?

Yes. If you have come towards the end of your contract, you can upgrade to “The Full Monty” through the T-Mobile website. If you’re currently in the middle of a contract, it is possible to switch to “The Full Monty” but you will not receive a new phone.

I’m switching to T-Mobile. Can I keep my existing phone number?

Yes. You’ll need to ask your existing network for a PAC code which you should provide to T-Mobile once your new phone has arrived. They will handle the process of transferring your phone number which should take no more than 24 hours. Our PAC Code Finder tool provides a step-by-step guide to transferring your mobile number to T-Mobile.

Where can I get “The Full Monty”?

“The Full Monty” will be available from the T-Mobile website from Wednesday (February 1st, 2012).

Related posts:

1. The Full Monty VS The One Plan – Prices, Networks & Handsets Compared
2. O2′s Giffgaff offering free calls, texts, internet for a year for viral marketers; launches tomorrow
3. Tesco launches £6/month SIM-only tariff with 100 minutes, unlimited texts

The “Stress Check” smartphone application promises to take measurements of your body’s psychological and physical stress levels. Available on the iPhone and Android platforms, a quick 2-minute test using the application will give you an immediate assessment of your current stress levels. This knowledge can help to diagnose the environmental factors contributing to your stress levels and could help you to reduce or eliminate those factors from your daily routine.

“Stress Check” works by making use of your smartphone’s camera to measure “heart rate variability” – a key indicator of stress. Additionally, your smartphone’s LED flash is used as a source of illumination and to make heart rate measurement possible.

How does a smartphone measure heart rate?

About a year ago, we covered the ‘Instant Heart Rate’ application for iPhone and Android smartphones. ‘Instant Heart Rate’ was developed by the same company as ‘Stress Check’ with both applications using the “pulse oximeter” technique to measure your heart rate.

Pulse oximeter applications such as ‘Instant Heart Rate’ and ‘Stress Check’ are able to take measurements of your heart rate by making use of the camera on your smartphone to observe small changes in your skin colour. The phone’s LED flash is used to illuminate your finger which should be lightly be placed over the camera lens.

Each time your heart beats and oxygen is pumped around the body, your blood becomes more oxygen rich and will absorb more light. This affects the amount of light which is reflected by the finger back into the camera. These small changes in skin colour are measured by the application and are used to determine heart rate. It’s a very similar technique to that used in medical pulse oximeters (though pulse oximeters typically use transmittance through the finger rather than reflectance from the finger).

How does my smartphone measure heart rate variability (HRV)?

A medical pulse oximeter works on the same principle. (Wikipedia)

Unlike ‘Instant Heart Rate’ which gives an instantaneous measurement of your heart rate, ‘Stress Check’ takes things one step further by looking at how your heart rate varies over time. It is well known by scientists that the time between two successive heart beats is not always the same: for example there could be 0.8 seconds between two heart beats, then 1.1 second until the heart beats again. Measuring the time interval between successive heart beats and looking at how this interval changes over a period of a few minutes will allow heart rate variability (or HRV) to be measured.

Various studies have been carried out into the relationship between heart rate variability and stress levels. The key conclusions of the research are that a high heart rate variability would indicate a state of relaxation or calm whereas a low heart rate variability would indicate high stress levels. It is by using this relationship that the app is able to determine your stress level from measurements of your heart rate.

How accurate is this application?

‘Stress Check’ hasn’t been clinically tested so we certainly wouldn’t rely on it for important medical measurements. The reliability of the application could also depend on the exact phone you use (for example, smartphones differ in how far the LED flash is placed from the camera lens). Anecdotally, during our testing, we felt the results from ‘Stress Check’ seem to match up fairly well with our own perceptions of stress.

According to Azumio, the measurement results should be fairly robust as they use the same algorithms which are used in professional devices:

Algorithms used to analyze HRV follow recommendations of European Society of Cardiology (ESC) and the North American Society of Pacing and Electrophysiology (NASPE)… Stress Check utilizes a method of quantitative stress level assessment developed by Biocom Technologies, a well-known developer of various professional health assessment technologies.

As a slight aside, we are slightly wary as to how accurately the application can measure stress level. For example, what is the meaning of percentage stress level? What does it mean to be 50% stressed or 100% stressed?

Is this a practical application which can be used on a daily basis?

The benefit of having a stress checker application built into your smartphone is that the convenience of using it makes it possible to diagnose which factors could be causing stress in your daily life. For example, could your stress levels be linked to your morning commute or do they alternatively result from the barrage of e-mails arriving through the day on your smartphone? By varying these factors in your daily life and using the ‘Stress Check’ application, it should be possible to pinpoint the causes of stress.

The key downsides to the application are that it takes around 2 minutes to take a measurement of heart rate variability (HRV) and stress level. Furthermore, the LED flash must be on during this entire time so the application will quickly eat up battery.

Where can I download the ‘Stress Check’ application?

‘Stress Check’ is available for the iPhone from the iTunes App Store (69p download) or alternatively on Android from the Android Market (free download).

Related posts:

1. “Instant Heart Rate” Android & iPhone application measures your pulse
2. T-Mobile launching Pulse Mini – a £100 Android PAYG smartphone
3. T-Mobile offering “Pulse Mini” Android Smartphone for £30 with 6 months free internet

Over the last few months, we’ve been carrying out an extensive investigation into which mobile networks provide the best-value tariffs. Part of that research has gone into developing new tools such as our Galaxy S II price comparison calculator, iPhone 4S price comparison calculator and our new Pay As You Go VS Contract price comparison website. In this article, I want to go back to basics and to answer the question: is there one mobile network which is consistently the cheapest? Do we really need price comparison websites or can we answer the question of the cheapest tariff without one? Are there any trends we can pick out?

Does the cheapest mobile network depend on the amount of calls I use or the amount I download?

Yes, very much so: it depends very strongly on the number of minutes you use and the amount of stuff you download. The following diagram visualises the cheapest network for a new BlackBerry Bold 9900 tariff. The number of minutes lies on the vertical axis and the amount of data consumed on the horizontal axis. In order to find the cheapest network corresponding to your usage, read along the relevant row and column to find a colour-coded box indicating which network offers the best value deal.

The key is as follows:

• Three: Black
• O2: Blue
• Orange: Orange
• T-Mobile: Pink
• Vodafone: Red

As an example of how to read the graph, somebody who uses 250 minutes and 200MB data each month will find that Orange gives the best value deal (we find 250 minutes on the vertical and 200MB on the horizontal). Meanwhile if you use 250 minutes and 100MB data, O2 is cheapest (denoted by blue). For someone using 250 minutes and no data, T-Mobile is cheapest (denoted by pink).

Our visualisation shows that cheapest network to buy a new BlackBerry Bold 9900 could either be Three, O2, Orange or T-Mobile depending on exactly how you use your phone (number of phone calls, data consumption, apps downloaded, etc). On the whole, Three offers the best deal for heavy downloaders (their ‘One Plan’ tariff offers all-you-can-eat data with no download limits) whereas O2 and Orange offer better deals for people who don’t download as much.

Does the cheapest network also depend on the number of text messages I send?

Not so much – the reason being that the vast majority of mobile tariffs include unlimited texts. The following diagram visualises the cheapest network for people who use different amounts of minutes and texts. The number of minutes is on the vertical axis and the number of text messages on the horizontal axis. We primarily see horizontal bands in this visualisation: showing that the cheapest network isn’t really influenced by the number of text messages sent. The exception is at 50 minutes: somebody sending 300+ texts a month would find Orange the cheapest whereas someone using fewer texts would find O2 provides better value.

Note that we’ve assumed an average data usage of 250MB/month here (we are not varying data consumption in this study).

Does the cheapest network also depend on the handset I want?

Yes. We repeated our analysis to create visualisations for the cheapest Apple iPhone 4S, Samsung Galaxy S II and Nokia Lumia 800. The following plots show the cheapest network for different combinations of minutes (vertical axis) and download allowances (horizontal axis). Some trends we’ve observed are that:

• Three generally provides the best value tariffs if your data consumption is above 500MB or 1GB.
• O2 tends to provide the best value tariffs for users who make less than 200 minutes worth of phone calls a month.

For completeness we present the full set visualisations for all four phones below. The left column shows the cheapest network for different minutes/data combinations (with 250 texts) whilst the right column shows the cheapest network for different minutes/texts combinations (with 250MB data usage). The phones we compared were the BlackBerry Bold 9900, Apple iPhone 4S, Samsung Galaxy S II and Nokia Lumia 800.

Minutes VS Data	Minutes VS Texts

What conclusions can we draw?

Our analyses show that there is no simple answer to the question of which network is the cheapest – it’s worth using a price comparison calculator to check. General trends are that Three tends to offer the best deals for heavy data users whilst O2 offers some of the best deals for people who use fewer than 200 minutes a month. T-Mobile and Orange have some fairly respectable showings in our study whilst Vodafone tends to be one of the more expensive networks (we rarely saw Vodafone being the cheapest network).

• This study makes use of the total cost of ownership calculation when comparing mobile contract prices. This takes into account both the upfront price and the 24 monthly payments to calculate the total amount paid over 24 months. The cheapest mobile contract is calculated using the tools provided at PAYGvsContract.com. For this study, we are not including Pay As You Go tariffs (e.g. Giffgaff).

Related posts:

1. Data Visualisation: How are people switching between networks?
2. Ken’s Tech Tips Index: Three is UK’s best network according to poll of 7,200 consumers
3. How to choose your own custom mobile phone number and use it on any network

With Pay As You Go, you'll need to top up your phone regularly with credit.

What is a “Pay As You Go” or “Pay Monthly” mobile tariff?

• “Pay As You Go” or pre-pay refers to any mobile phone tariff whereby you need to top-up your account with calling credit. You must top-up before you are able to make outgoing calls, send text messages or browse the internet. Typically, you are charged individually for each minute you spend on the phone, for each text message you send and for each megabyte of data you download. These charges are taken from your Pay As You Go account balance (“credit”).
• “Pay Monthly” or post-pay refers to a mobile phone contract (typically lasting 12, 18 or 24 months). Pay Monthly contracts have a set monthly price for which you’ll get an inclusive allowance of calls, texts and internet browsing. You’ll be billed at for your basic contract as well as any additional out-of-allowance charges incurred at the end of the month. These charges will usually be taken from your bank account automatically via direct debit.

To complicate things, a new class of Pay As You Go tariff has emerged over the past year or two. These tariffs aim to combine some of the benefits of Pay Monthly such as cheap calls, texts and internet whilst maintaining popular features of Pay As You Go such as the spend control and lack of 24-month commitment. Examples of “hybrid” Pay As You Go tariffs include Giffgaff Goodybags, Three’s “All in One” tariffs and O2 Simplicity. Attempts have also been made to bring better spend control to Pay Monthly such as T-Mobile’s “You Fix” tariff which prevents customers from running up additional out-of-allowance charges.

What are the pros and cons of Pay As You Go and Pay Monthly?

In general, Pay Monthly contracts tend to offer better value than Pay As You Go – airtime tends to be cheaper on Pay Monthly and you’ll get a free or reduced price smartphone included with your contract. The flipside of this is that you need to commit to your mobile network for 24 months and you’ll need to pass a credit check for your contract.

Some “hybrid” Pay As You Go tariffs combine the benefits of both Pay As You Go. For example, Giffgaff (see our full review of Giffgaff) offers low-cost airtime bundles on Pay As You Go without a 24 month commitment or a credit check. However, you’ll still need to pay the full price of the phone upfront like on other Pay As You Go tariffs.

* “Hybrid Pay As You Go” tariffs include Giffgaff Goodybags, Three’s “All in One” tariffs and O2 Simplicity.

How does the total cost of ownership compare for Pay As You Go and Pay Monthly?

One of the key benefits of a 24-month Pay Monthly contract is that you’ll either get a free or substantially discounted smartphone included with your contract. One possible alternative, if you’re happy to spend around £300-£400 to buy a SIM-free smartphone upfront, would be to use a hybrid Pay As You Go tariff such as Giffgaff’s Goodybags. Over 24 months, the total cost of ownership of both methods typically works out to be fairly similar for both types of tariff.

According to PAYGvsContract.com, the total cost of ownership of the cheapest Pay As You Go and Pay Monthly tariffs compare as follows for somebody using 250 minutes, 250 texts and 250MB internet each month:

For many of the handsets listed, the Pay As You Go option is cheaper. However, the results differ when we look at a “heavy” user who consumes 500 minutes, 500 texts and 250MB internet a month:

Where can I find out more about Pay As You Go tariffs?

We’ve got a comprehensive listing of the UK’s Pay As You Go tariffs and where to get free SIM cards.

Where can I find out more about Pay Monthly tariffs?

We’ve got a listing of the UK’s best value SIM-only tariffs for smartphones. These SIM cards can be used in your current smartphone and offer a low-cost bundle of calls, texts and internet access.

Is there an easy way to compare Pay As You Go tariffs against Pay Monthly tariffs?

Yes. We run our own price comparison website called PAYGvsContract.com (find out more information about the site). This website is able to simultaneously compare both Pay As You Go and Pay Monthly options to find out which type of tariff is cheapest. We support the most popular smartphones including the Apple iPhone 4S, Samsung Galaxy S II, Nokia Lumia 800 and HTC Wildfire S.

I’m switching network. Can I keep my existing phone number?

Yes. You can keep your existing phone number, even when moving between Pay As You Go and Pay Monthly. You’ll need to request a PAC Code from your current network which should be provided to your new network. Your new mobile network will handle the transfer of your phone number which should take no more than 24 hours.

Related posts:

1. £10/month Mobile Phone Deals: Best Value Contracts and SIM-Only Contracts
2. T-Mobile launches “You Fix” 12-month Pay Monthly contracts with capped spending
3. Comment & Analysis: Comparing Mobile Phone Contracts to Consumer Loans

We are pleased to announce the launch of PAYGvsContract.com – the new price comparison website from Ken’s Tech Tips which incorporates both Pay As You Go and Pay Monthly tariffs in one simple and easy-to-use price comparison website.

Why the need for a new price comparison website?

Over the past few years, the mobile industry has changed significantly. With the move towards expensive smartphones devices such as the iPhone 4S and the Galaxy S II, many of us now find ourselves forking out more than ever for our mobile phone calling plans. Additionally, it’s now commonplace to pay something for our phones upfront, even when we take out an expensive £35/month or £40/month contract – smartphones are seldom “free” even with these expensive contracts.

The second change in the industry is that many of us are now demanding the flexibility to upgrade our phones whenever we please. The combination of buying a SIM-free phone and taking a cheap tariff from a Pay As You Go provider such as Giffgaff provides a great-value alternative to a Pay Monthly contract, and is often comparable in cost to a contract (see our Giffgaff review). Occasionally these Pay As You Go plans even work out to be even cheaper than their Pay Monthly counterparts.

For both of these reasons, we think the old model of having price comparison websites that deal solely with Pay Monthly contracts or price comparison websites that rank by monthly contract price are outdated. Our new website, PAYGvsContract.com, is the first mobile phone comparison site to incorporate both Pay As You Go and Contract deals into one website and is one of the first to use the total cost of ownership calculation to bring greater clarity to price comparison.

How does PAYGvsContract.com work?

PAYGvsContract.com is a new website from Ken’s Tech Tips which incorporates both Pay As You Go and Pay Monthly into one easy-to-use comparison tool. This allows you to find the cheapest and most suitable way of owning a new smartphone regardless of whether the cheapest method would be to Pay As You Go or to take out a new contract. When carrying out a price comparison, users of PAYGvsContract.com are presented with:

• A side-by-side comparison of the costs on Pay As You Go and Pay Monthly.
  We find the cheapest Pay As You Go deal and we find the cheapest Pay Monthly deal – then we show you how the total cost of the two options compare. On Pay As You Go, you’d expect to pay more for your phone upfront but this is offset by the lower monthly cost for the remaining 24 months. The first section of the results shows you the cheapest Pay As You Go option and the cheapest Pay Monthly option and how the total cost compares.

• A listing of the cheapest tariffs network-by-network, plus a clear bar chart comparison.
  We search through thousands of tariffs and tariff combinations to find the cheapest tariff on each network. Those tariffs are sorted by their total cost of ownership and you’re shown a bar-chart comparison of how the price compares between networks. We use a unique “stacked bar chart” layout which allows you to see how the costs break down over the course of your contract – this is useful when considering cashflow and how much you need to pay for your phone upfront.

• Full and clear specifications on the devices.
  It can sometimes be difficult to know which phone to go for – do you go for the Apple iPhone 4S, the Samsung Galaxy S II or the HTC Sensation XE? How do the three devices differ in terms of their feature set? Which phone has the best camera, the largest display or the longest battery life? PAYGvsContract.com makes it very easy for you to choose the right phone – the specifications of the phone are integrated straight into the website.

Which phones do you support?

We currently support price comparisons for 11 smartphones with more on the way:

• Apple iPhone 3G S
• Apple iPhone 4
• Apple iPhone 4S: 16GB edition, 32GB edition and 64GB edition
• BlackBerry Bold 9900 Touch
• HTC Sensation XE
• HTC Wildfire S
• Nokia Lumia 800
• Samsung Galaxy Ace
• Samsung Galaxy S II

Which mobile networks and tariffs do you support?

We currently support one Pay As You Go network (Giffgaff) and the all of the major Pay Monthly networks:

• Giffgaff (Pay As You Go). Fully supported, including all of the standard Goodybag packages are supported as well as the new £3/month BlackBerry add-on. This is currently the only supported Pay As You Go option – Giffgaff is by far the most popular option amongst Ken’s Tech Tips readers so we thought it was a good place to start. For upfront handset cost, we currently pull in SIM-free prices from Amazon.co.uk (you are able to input your handset prices if you find it cheaper elsewhere).
• Three (Pay Monthly). Fully supported.
• O2 (Pay Monthly). Fully supported, including the choice of different O2 data plans (e.g. The Basics, The All Rounder & The Works).
• Orange (Pay Monthly). Fully supported.
• T-Mobile (Pay Monthly). Fully supported, including automatic choice of flexible boosters when beneficial.
• Vodafone (Pay Monthly). Fully supported.
• Tesco Mobile (Pay Monthly). Limited support. Currently we only support for 16GB iPhone 4S tariffs, though we envision adding support for other phones soon.

Where can I carry out a price comparison?

You can carry out a price comparison at PAYGvsContract.com.

Your comments…

We’d love to hear your views on our new price comparison website. Is there anything we can do to make it more useful for you? Do you think we’re going the right way about it? What would your ideal price comparison website be able to do?

Related posts:

1. Giffgaff offering half price “Goodybags” SIM-only packages, free internet
2. Giffgaff Goodybags: Pay As You Go bundles on O2 virtual network from £5/month
3. Giffgaff raise prices to 10p/minute and 6p/text; Giffgaff Goodybags remain unchanged

The Amazon Kindle was one of the most gifted items this Christmas and reading books electronically on devices like the Kindle is becoming more and more popular by the day. With the ability to hold your entire library in one portable device and the ability to download books wirelessly in an instant, it’s no wonder why the Kindle has been such a popular device for bookworms and readers this Christmas. However, contrary to popular perception, Kindle e-books actually tend to be more expensive than their printed counterparts.

In an analysis of Amazon.co.uk’s top 100 bestselling books, we found that 78% of Amazon’s bestsellers were available on the Kindle format. On average, e-books cost 10% more than their physical counterparts – primarily due to the additional VAT charged on sales of e-books. This is the follow-up to the study we previously carried out in December 2010 and June 2011.

The key findings…

We considered the 100 bestselling books on Amazon.co.uk on the afternoon of 5th January 2012. From these 100 titles, we removed calendars (it doesn’t make sense to have a Kindle calendar), box sets and any products without a published price. This left us with 95 titles which form the basis of our analysis. From these 95 titles, there is a cross-section of different types of books including novels, cookery books and biographies. We found that:

• 78% of titles are available in the Kindle e-Book format. Of the 95 titles considered, 74 were available in the Kindle e-Book format (78% of the sample). All 95 books were available in some version of a printed format: 73 in hardback format and 65 in paperback format (77% and 68% respectively).
• On average, Kindle e-Books were 10.4% dearer than the corresponding physical books. We considered the 74 titles which were available on both printed format and Kindle e-book format. The total cost of these titles on the Kindle format was £509.83 (an average of £6.89 per e-book) which compares to £461.90 for the physical book (an average of £6.24 per book). The total RRP of the 74 books is £1,037.40 (an average of £14.02 per book).
• 54% of titles are dearer on the Kindle. Of the 74 titles available in both printed & e-book formats, more than half of them cost more on the Kindle. 40 titles (54%) were dearer on the Kindle with the other 34 titles (46%) being cheaper on the Kindle.
• For books with a paperback release, the Kindle e-Book is 14.9% dearer on average. Considering only the 55 titles with both a paperback and Kindle release, the Kindle edition is 14.9% more expensive on average. The total cost of these 55 books on the Kindle format is £316.06. This compares to £275.08 in the paperback format. This suggests that for older books (e.g. those with a paperback release), savings which could be achieved by opting for the print format are even bigger.

Our advice is that Kindle owners should always compare the price of their e-books against the price for the printed book before purchasing. Doing so will save you 10.4% of the cost of the book on average.

Why do e-books cost more?

photo: christian.senger

E-books are usually assumed to be cheaper than their physical counterparts due to the fact they do away with the costs of printing and the costs of distributing a physical book. However, our analysis has shown that this is not actually the case: the physical book is often cheaper. This warrants some kind of explanation.

Firstly, much of the cost associated with publishing a new book happens before a single book is even sold. Examples of fixed costs include the advance paid to the author, the cost of research, marketing, employing copy editors, lawyers and so on. These fixed costs need to be recovered through the sales of all books – regardless of whether they’re published in print format or electronic format. In reality, the actual cost of printing and distributing a physical book only makes up a small part of the final cost.

Secondly, VAT is charged on the sale of e-books at the standard rate of 20% in the UK. Printed books are zero-rated for VAT and are hence exempt from a VAT charge. The addition of 20% VAT makes a huge difference to the price of e-books and explains why they cost more than printed books. For our basket of 74 titles, the costs compare as follows:

What this analysis shows it that the money Amazon receives from e-book sales is actually 8% less on average than they would receive from selling a physical printed book. However, because the UK government collects VAT on sales of e-books, the final cost as charged to consumers is 10.4% higher for e-books. Until the UK government accounts for this disparity in VAT, e-books are likely to remain more expensive than printed books.

Where can I find out more about Kindle?

We’ve got an in-depth comparison between the wi-fi and 3G versions of the Kindle and a guide to getting free web browsing abroad with the 3G Kindle Keyboard. You can also find out more about the Kindle on the Amazon website.

The Kindle is available to purchase from Amazon.co.uk. You can buy a wi-fi Kindle for £89 and a 3G & wi-fi Kindle with keyboard for £149.

Which books were considered in your study?

We considered the 100 best-selling books on Amazon.co.uk on the afternoon of the 5th January 2012. Of these 100 top titles, 95 titles were available for order are were neither calendars nor box sets.  The basket on which we base our comparison of the price of e-books and printed books is comprised of the 74 titles available in both printed and Kindle e-book formats. The price of the Kindle e-Book is compared to the cheapest printed book (whether that is hardback or paperback). Prices of individual books on Amazon.co.uk will fluctuate from day-to-day but as we have considered a large sample of bestselling books, we believe the general conclusions of the study are valid. The price of audiobooks was recorded as part of the study but was not considered.

View and Download Raw Data (Spreadsheet)

This study was carried out on 5th January 2012. We carried out similar studies in December 2010 and June 2011.

Related posts:

1. Kindle e-Books 9% dearer than print – Price of e-Books, paperback & hardback compared
2. Physical Books VS Kindle e-Books: Comparing Availability and Price of Bestselling Books
3. Amazon’s Kindle offers free worldwide 3G web browsing