"Free gift" phones - Are they worth it?

SamVII

So my contract is due to end in around a months time, so its time to shop around for a new one and I have noticed on several sites offering free gifts, such as a PS3.

What I've noticed is that you wont get a top notch phone (which I'm not to bothered about) and the price plans are exactly brilliant, although most offer 100-300mins and unlimited texts.

Im looking to get a contract with a free PS3, but is it actually worth doing and has anyone seen any decent contracts about (20-30) with a alright phone?

nsabournemouth

Stay well clear. Also worth noting that the PlayStation network is down and people's details have been hacked.

grumbler

SamVII wrote: »

So my contract is due to end in around a months time, so its time to shop around for a new one and I have noticed on several sites offering free gifts, such as a PS3.

An 'alright' unlocked phone prices start from 1p+£10 topup (minus cashback).
For £10 p.m. you can have 600m+500t (+internet if you need it).

Subtract the above from the total cost of the contract and see if you are getting a good deal on PS3. I don't think so.

Hammyman

There is no such thing as a free gift. You will be paying for it either by a lower cost phone or lower minutes etc in your tarrif.

The way to work out how much you're paying is to look at what you'd pay for the same monthly minutes/texts on a SIM only plan direct from the mobile network. Deduct that from the monthly tarrif you're paying. Multiply the answer by the length of the contract.

For example:
SIM only plan , 200 minutes, 300 texts £10 a month direct from the network.
Basic Nokia phone with PS3 free gift - 200 minutes, 300 texts £20 a month - 24 month contract.

Difference is £10 a month. Multiply that by 24 and the difference between the SIM only and the one with phone and PS3 is £240. Therefore you are paying £240 for the free phone and PS3....

That above is a simplistic view as some free gifts from retailers (not the network) are paid for/subsidised out of the commission they get for signing up a new customer.

grumbler

Hammyman wrote: »

There is no such thing as a free gift.

There is. With a good redemption deal the cost of the free gift can exceed the total cost of the contract. Such deals do require some effort to get the 'gift'.