MSE News: Mobile operators forced to offer 12-month contracts

Wintermute

A_Flock_Of_Sheep wrote: »

About time. All contracts longer than 12 months should be outlawed.

The operators and handset manufacturers would have to do something with pricing as people just wouldn't buy.

Why do we need the government to babysit us, people need to look up the definition of the word contract before entering into one.

Nobody is forced to enter into a contract, there's PAYG, 30 day rolling contracts, 12 month SIM only contract, 18 month handset contracts and 24 month handset contracts, with all of these options your paying for the handset, you're paying for what you use, it's just up to the consumer to decide which they enter into.
If operators are forced to offer 12 month handset contracts then people will just spend an extra £5 or so a month than they would on an 18 month contract so they're going to end up paying more overall.

mobilejunkie

Well now; maybe I'm the exception to the general concensus, but bring it on! Until 12 month cashback contracts dried up I was able to run up to 10 or 11 each year - making a profit on each. Now I can still accumulate a large number of contracts, but it takes longer to make a similar profit - i.e. it is less efficient.

I do change my numbers so having longer contracts isn't all bad - but if I get the same number of contracts each year and they all last at least 50% longer that's an awful lot of contracts on the go at once; my ambition/target has been 12, but I could end up with a lot more than that in order to achieve the same profit per annum. Then again, at least I will have all options open again - provided the right deals materialise. The phones on longer cashback deals are generally worse than they were on 12 month contracts. The fact 12 month contracts are dearer for less minutes is not a problem (having so many of the blighters but getting the money back anyway). I'm currently considering a contract with just 100 minutes which is 18 months long with a rubbish phone - but free. Nice profit but not much use apart from that. Now, the SAME deal on a 12 month contract would be far more attractive.

In any case, I hardly see how ANYONE can be worse off; they can make the 12 month contracts (with a phone) less attractive/more expensive, just as they make 24 month contracts cheaper (per month) than 18 month contracts. Since 18 months and 24 months will still be pushed onto people I can't see a problem. 12 month contracts were fantastic (for some, like me - but also some non-cashback customers). It's not restricting the market, but opening it up after the networks have been trying to close it down. For once, I think the regulators have done something good!

A_Flock_Of_Sheep

Wintermute wrote: »

Why do we need the government to babysit us, people need to look up the definition of the word contract before entering into one.

Nobody is forced to enter into a contract, there's PAYG, 30 day rolling contracts, 12 month SIM only contract, 18 month handset contracts and 24 month handset contracts, with all of these options your paying for the handset, you're paying for what you use, it's just up to the consumer to decide which they enter into.
If operators are forced to offer 12 month handset contracts then people will just spend an extra £5 or so a month than they would on an 18 month contract so they're going to end up paying more overall.

If there is that many options it needs to be simplified.

12 months is long enough to be saddled to a mobile provider. You only have to see the number of complaints on here to realise many are below par when it comes to customer service. At least you know you can dump them in 12 months tops.

Also perhaps the government should outlaw the "free" handset con. It clearly isn't free and everyone knows it. Also the "unlimited internet" but ohh it's not really in the small print swindle should also be investigated and sorted out.

Trunk_z

Only having the option of 18 and 24month contracts was a bit annoying. Luckily, I have a 1 month rolling contract - I get upset, I walk and take my money elsewhere.

Wintermute

A_Flock_Of_Sheep wrote: »

If there is that many options it needs to be simplified.

Maybe there should be fewer handsets available too? Or fewer networks? Having options is never a bad thing!

A_Flock_Of_Sheep wrote: »

12 months is long enough to be saddled to a mobile provider. You only have to see the number of complaints on here to realise many are below par when it comes to customer service. At least you know you can dump them in 12 months tops.

The majority of mobile users don't care about customer service since most of the time things just work. Do people really need a new phone every year?

A_Flock_Of_Sheep wrote: »

Also perhaps the government should outlaw the "free" handset con. It clearly isn't free and everyone knows it. Also the "unlimited internet" but ohh it's not really in the small print swindle should also be investigated and sorted out.

People aren't stupid, they know the handset isn't free, but with modern handsets costing hundreds it's the preferred method of purchasing them for a lot of people.

rev_henry

Wintermute wrote: »

Do people really need a new phone every year?

Its not a question of need, its a question of what the consumer wants. I want a new phone every 12 months. I could do so until the networks got greedy a couple of years ago, and stopped giving me what I wanted.

lozzaman

In that time the tariffs have come down though. I'm now paying every 2 years what I was paying every year and getting 1 phone per contract cycle. They could offer a 1 year contract at double the monthly line rental of the 24 month contracts which would be a worse deal (but hey, you're getting a 'free' phone every year!)

The networks are still offering 18 month contracts but they are often pretty poor value.

PotatoPotato

I am loving this new 12 month contract being forced on.
I definitely agree to consumer wants this, you should see hot the deal got on hotuk when the iphone 4 was on a 12 month contract! This alone speaks volumes of how people would pay a premium for shorter contracts.

Also remember prices are always changing, i remember paying £20 for 18 month contract on o2 with a free phone.. roughly 8 months down the line o2 knocked £5 off for the exact same tariff and sim onlys became more popular!
I will prob never sign up to an 18 month contract again, unless it was for a really high end phone like a htc desire hd or iphone.

However, I dont have to now because tesco already offers them on a 12 month contract, albeit.. at a higher OVERALL contract price..
but short contract = at a higher cost = the premium consumers are willing to pay.

P.S: A smart consumer will always compare how much more the overall cost is more on a 12 month contract to an 18 month.
It will be a no-brainer if it was a considerable difference........ Meaning 12 month contracts = more competition/haggling

jenniewb

As much as I'd love a 12 month contract, I just would never be able to afford one and have a phone which is useable for the purposes I want it for.

For that reason I'm thinking maybe I should hang on 'till April and see how desperate the mobile contracts get in a bid to get the last few remaining 18 or 24 month bill paying contracts to add to their income! I have a contract that ends the end of Feb and I have had such a raw deal that I have gotten used to not using it that much if at all. I don't think I'll miss it (though people will be annoyed I am uncontactable as they have done previously when the handset was being repaired: 4 months over 18 month contract!) I wonder if I'll actually get a decent handset for a decent price if I wait just a few more months!

gjchester

PotatoPotato wrote: »

I am loving this new 12 month contract being forced on.
I definitely agree to consumer wants this, you should see hot the deal got on hotuk when the iphone 4 was on a 12 month contract! This alone speaks volumes of how people would pay a premium for shorter contracts.

But when the phone goes for £170 the handset as mine was on a £35 PCM contract to £499 (the Sim Free price) for the handset on the same tarrif how many people will still want that deal?

As I've said before everytime the EU sets a limit somewhere in the mobile world something else goes up to compensate. Cheaper EU calls and Texts, so the no EU calls went up.