Shorter contracts get smart deals

October 19, 2010

In 2008 Ofcom found that only 3% of mobile phone customers were locked into contracts for 2 years plus – in 2010 this figure has grown to 66%. The retail watchdog Consumer Focus suggest that when customers are tied into long contracts they shop around less for better deals and the mobile networks feel less pressure to compete on prices. Shorter contracts offer the chance for you, the consumer, to shop sooner for a more attractive deal and a new handset.

Some companies like Orange offer their most competitive deals on 3-year contract and Orange is also the only one of the big six not to offer a 12 month contract. From May 2011 under the universal service directive across the EU all mobile phone network providers will be required to offer a 12-month contract and all contracts will be capped at 24-months.

So if you are currently considering leaving PAYG and entering into a contract – be smart and make it short. Tesco Mobile are one of the few networks who are selling 12-month deals with a free phone included (Samsung C3050) for £15 a month. Tesco Mobile also has a 12-month contract at £20 a month for the Apple iPhone with the 8GB 3GS model costing £259. This deal includes 100 minutes of calls, unlimited texts and 3 months unlimited data. Check out this deal by selecting the Tesco Mobile link  on the righthand side of this website. Tesco Mobile also has attractive Sim-only deals 100 minutes of calls and unlimited texts at £6 a month.

So, if you do not want to upgrade your phone, save money by opting for a sim-only deal on a PAYG, or monthly contract. O2 offers a competitive deal with unlimited texts and calls at 8p a minute for only £5 a month – this deal comes under Giffgaff, part of O2 – check out our O2 link for more about this.


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