Mobile Novice!!

BOGUSDUDE!

Hi

Can anyone explain to me why I can get cheaper deals at websites like affordablemobiles.co.uk and buymobilephones.co.uk cheaper than I can get them from the provider??????

Im a bit clueless when it comes to buying mobile phones and contracts etc. Ive had a o2 sim only contract for years and now want to upgrade to a free handset, but keep seeing better deals on other sites?

Whats the catch?

Thanks

grumbler

Carphone Warehouse / Phones 4 U etc.....

!!!! ????? !?!?!?

BTW, there is no such thing as a 'free' handset. They just call it 'free'. See Martin's artricle above: Cheap Mobiles: Compare, switch & use cashback

keith1950

Hi, the networks use 3rd party retailers to keep up their share of the market.

They pay them massive commisions to get the extra business which means that you can usually get a better deal.

The cashback by redemption deals work by relying on the fact that a certain %age of customers will forget to claim within the required timescale.

You can judge the size of their commisions by checking out some of the auto cashback deals.

As an example, in January I got my son a cheapish mobile ( selling PAYG for around £100 ) on contract with auto cashback.

£30/M for 24 months = £720
Mobile to buy £100
Balance £620
Autocashback £320
Balance £300
Quidco cashback £60
Balance £240

Although not a good example of the best value you can see that if this contract had been taken out directly from the network, the network would have been 'in pocket' to the tune of £720-£240= £480.