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Vodaphone - Getting out of 2 year contract

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Comments

  • gjchester
    gjchester Posts: 5,741 Forumite
    Woe, personal!

    I think we're arguing different points. I'm with you, I agree. Once you sign a contract, you should honour it.

    But my problem is not with honouring contracts. It's about the amount of money the service providers trick and mislead people into paying. People on 24 month contracts, a lot of them, don't realise that they're paying for their phone twice.

    Most people don't have the £500 handy to spend on a sim free iphone or android. So the obvious option for most is to buy a contract, where, in the old days of 12 month term contracts, represented ok value. The 12 months at £35 would add up to enough to cover the networks costs and the mobile phone.

    As I said before, after the first nine months, the handset is paid for. The next three months covers the network charges. The remaining term on the contract is overpriced because it's still charging you for the phone. By extending the contract the customer is forced to keep a phone that, in many cases, is so old it doesn't even have a warranty!

    Every network should be obliged to give an upgrade at 12 months or offer to reduce the line rental.

    Lets take your example and my Iphone.

    £35 PCM for the phone £160 cost upfront. Thats means I have to payback £340 to be at the same point as if I bought sim free. Thats 10 months more or less on my contract, however who pays for the airtime and calls suring that?

    The equivalent sim only tarrif on Vodafone is £13 PCM, so I'm paying £22 a month to pay off the iPhone Looking at it like that as I'm paying £13 a month the network breaks even about the 15 month point. And I have a 18 month contract, hardly a huge profit making exersize for Vodafone on my spend. Total spend for me on vodafone for 18 months is £790


    Looking at GiffGaff I'd need to buy the £10 goodie bag each month to get the same deal (more or less I get 300 minutes the £10 goodie bag is £250 mins but has landlines in ) and buy the phone (£180 +£500). Yes thats £100 saved but how many people can put down £500 on new phone in one go?

    Vodafone also has a call centre (which can be a good or bad experience) and shops I can go into if there is a problem. The saving isn't really worth the hassle to me.

    As Guys dad says the terms are not hidden or changed on you, if you don't like them don't take out a contract.
  • redped
    redped Posts: 800 Forumite
    Part of the Furniture 500 Posts Name Dropper
    But my problem is not with honouring contracts. It's about the amount of money the service providers trick and mislead people into paying. People on 24 month contracts, a lot of them, don't realise that they're paying for their phone twice.

    I hardly see it as tricking or misleading people. If people can't be bothered to do a simple calculation before signing up to a contract, then that's their fault, not the service providers.
  • drussellh
    drussellh Posts: 125 Forumite
    of course, everyone on 24 month contracts had a gun put to their heads.
  • macman wrote: »
    Which, given the ever-rising price of handsets, would just push contract prices up even higher.
    No-one needs an upgrade every 12 months. And no-one needs a £500 handset.
    But if you want those things, fine, just don't expect everyone else to subsidise them.

    No one needs an upgrade as long as the warranty is for the life of the contract. You don't need it - but they're still charging for it.
  • macman wrote: »
    Which, given the ever-rising price of handsets, would just push contract prices up even higher.
    No-one needs an upgrade every 12 months. And no-one needs a £500 handset.
    But if you want those things, fine, just don't expect everyone else to subsidise them.

    No one needs an upgrade as long as the warranty is for the life of the contract. You don't need it - but they're still charging for it.
  • gjchester wrote: »
    Lets take your example and my Iphone.

    £35 PCM for the phone £160 cost upfront. Thats means I have to payback £340 to be at the same point as if I bought sim free. Thats 10 months more or less on my contract, however who pays for the airtime and calls suring that?

    The equivalent sim only tarrif on Vodafone is £13 PCM, so I'm paying £22 a month to pay off the iPhone Looking at it like that as I'm paying £13 a month the network breaks even about the 15 month point. And I have a 18 month contract, hardly a huge profit making exersize for Vodafone on my spend. Total spend for me on vodafone for 18 months is £790


    Looking at GiffGaff I'd need to buy the £10 goodie bag each month to get the same deal (more or less I get 300 minutes the £10 goodie bag is £250 mins but has landlines in ) and buy the phone (£180 +£500). Yes thats £100 saved but how many people can put down £500 on new phone in one go?

    Vodafone also has a call centre (which can be a good or bad experience) and shops I can go into if there is a problem. The saving isn't really worth the hassle to me.

    As Guys dad says the terms are not hidden or changed on you, if you don't like them don't take out a contract.

    It's still money into of their pocket and money out of yours. It's enough money to have, say, given you a little upgrade worth about £100 or so? Or some cash back for loyalty? Or even, let you reduce your tariff. Privileges they used to offer, but now, don't. With no excuse.
  • drussellh wrote: »
    of course, everyone on 24 month contracts had a gun put to their heads.

    It's tough to find a good deal these days. It's tough to find a deal that gives a snazzy phone and enough usage to satisfy ones needs. Nearly all contracts promising this are over 24 months.

    Most people don't have the patience or time to shop around. And from these people, the companies profit in a massive way.
  • macman
    macman Posts: 53,129 Forumite
    Part of the Furniture 10,000 Posts Name Dropper
    No one needs an upgrade as long as the warranty is for the life of the contract. You don't need it - but they're still charging for it.

    That simply doesn't make sense, because the handset is yours from day one. It's not on rental for 24 months.
    Yes, it would be nice if the phone industry moved to 2 year warranties, like other areas of electronics-but that would be the manufacturers' move, not the networks.
    Most phones are pretty reliable. If they're going to go wrong or have inherent faults (usually software), then that's going to become apparent in the first 12m anyway.
    No free lunch, and no free laptop ;)
  • dangerman7uk
    dangerman7uk Posts: 138 Forumite
    I don't think you're getting my point.
  • Iain_L
    Iain_L Posts: 151 Forumite
    edited 12 July 2011 at 6:53AM
    This is definitely a creep from the OPs question of how to terminate the contract early, but I have to defend Vodafone here.

    I have recently taken out a 2 year contract, which is costing me £10.22 monthly. I work that out over the 2 years as £245.28. Included in that contract I got 100 mins and 300 texts monthly (I spend a lot of time abroad so don't need more). I have no data included as whenever I need to I use wi-fi.

    For signing this contract, Vodafone gave me a Motorola Defy free of charge. As an example, Carphone Warehouse advertise the sim free Defy at £238.95.

    I think the £6.33 total difference over the contact period is extremely good value for the network time I have.

    Iain
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