Contract lengths - where did 12 months go?

stripee

MoneyGypsy wrote: »

Luckily my problem is solved. I got the £7.50 t-mobile deal for 12months that was on another thread. Okay no phone included but for that price I can buy one on ebay!

hi moneygypsy,

care to share the link for the deal?

thanks

Chorlie

stripee wrote: »

hi moneygypsy,

care to share the link for the deal?

thanks

https://forums.moneysavingexpert.com/discussion/2783708

ACDeag

A_Flock_Of_Sheep wrote: »

OMG Imagine a 60 month contract!

I read somewhere (Sunday Times I think) that a new EU law effective in May 2011 means that contracts cannot be longer than 24 months and that networks must also offer 12 month contracts.

So things may change next year if the report is right.

nickmack

ACDeag wrote: »

I read somewhere (Sunday Times I think) that a new EU law effective in May 2011 means that contracts cannot be longer than 24 months and that networks must also offer 12 month contracts.

I'm not sure this will have any useful effect.

All that will happen is any new expensive phones on 12 month contracts will require a large payment for the device at the beginning. No law will change the fact that the network needs to recover the cost of the device over the term of the contract.

Longer term contracts such as 24 months, though undesirable for many, are a way for customers to get an expensive handset for a nominal cost/free with a contract.

rev_henry

nickmack wrote: »

I'm not sure this will have any useful effect.

All that will happen is any new expensive phones on 12 month contracts will require a large payment for the device at the beginning. No law will change the fact that the network needs to recover the cost of the device over the term of the contract.

Longer term contracts such as 24 months, though undesirable for many, are a way for customers to get an expensive handset for a nominal cost/free with a contract.

I disagree. Expensive handsets always used to be available on 12 month contracts. Ok they may be more expensive now, but so are the monthly price plans.
My first phone was a motorola V66 (in 2002, when I was 11 haha!). My parents got it for me free on a 12 month T-mob contract for £13.99 a month. I remember the handset only price at the time was £250-350. Handsets aren't very much more expensive than that now. Excluding the silly price of the iPhone.

I'm very tempted now by this Orange San Francisco, with the Tmob £7.50 sim...

drbesty

It's not just about covering the cost of the handset, you also have to factor in the expensive 3g network that the handset runs on, the staff you need to support the phone when it goes wrong (and theres alot more to go wrong on them these days), the upcoming rollout of the new LTE network that will cost a fortune etc. Also look at what you got with 12 month contracts a few years ago, maybe 100 mins and 100 texts for £25, these days you get alot more, unlimited texts, loads of crossnet minutes, a generous data allowence, in real terms mobile phones have never been cheaper and the profit margins for the networks have never been smaller