German consumers are routinely overpaying for mobile services by bundling smartphone purchases with network contracts.. The comparison portal Verivox, in findings reported by the Funke-Mediengruppe newspapers, demonstrates that separating device and tariff purchases consistently yields substantial savings, averaging around 25% over a 24-month period, with some instances reaching nearly 37%.
The savings are not uniformly distributed across providers. Customers opting for a separate device and tariff within the Telekom network saw an average reduction of 29%, while Vodafone, 1&1 and O2 users experienced savings of 27%, 24% and 21% respectively. The disparity highlights a potentially strategic tactic employed by Telekom to incentivize bundled contracts despite offering comparatively higher costs overall.
The most dramatic cost difference occurred with the purchase of an iPhone 17 Pro coupled with a budget-friendly, data-moderate discount tariff. This combination resulted in savings of €675 compared to the equivalent Telekom bundled offer. The highest percentage saving, 37%, was recorded for a Google Pixel 9a purchased separately within the 1&1 network.
The inflated cost of bundled packages points to a structural problem within the German telecom market. Jörg Schamberg, a telecommunications expert at Verivox, noted that “contract tariffs from the major providers contain roughly six times the data volume that is consumed on average per person in Germany”. He argues that many consumers are unwittingly locking themselves into oversized data plans, driven by the attractive upfront cost of a subsidized device. Customers effectively contribute to paying for “unnecessary services” to secure a lower initial price on a smartphone.
Verivox’s methodology involved comparing common bundled smartphone offers from Telekom, Vodafone, O2 and 1&1 against a combination of separately purchased devices and discount tariffs within the same network. Two user profiles – average and premium – were considered, each evaluated with two tariff variants: one matching the provider’s standard performance and another based on average data consumption. This allows for a nuanced examination of cost differentials beyond mere headline pricing.
The study utilized manufacturer’s suggested retail prices for a Google Pixel 9a (128 GB) and an Apple iPhone 17 Pro (256 GB) and projected all hardware and tariff costs over a 24-month period. Crucially, the analysis, as of November 25, 2025, excludes short-term promotional offers, aiming to provide a sustained view of the cost dynamics. This raises questions about the transparency of these bundled deals and whether consumers are adequately informed about the long-term financial implications of opting for a combined package, potentially suggesting a need for greater price regulation or consumer education initiatives within the German telecom sector.
