o2 very confusing charges

ogden69

Can someone explain the o2 mobile refresh program, where if you pay more upfront today, you end up paying more over the course of 2 years than you would if you paid nothing upfront.
For example - i ohone 4S
- £0 upfront, £27 pounds a month for 2 years TOTAL = £648
- £219.99 upfront, £22 a month for 2 years TOTAL =£747.99
- £480 upfront - £12 a month for 2 years TOTAL = £480+£288 = £768
This is for the same tarif - 600 mins, Unlimited text and 750MB data
Suely it should be cheaper if you pay more upfront???

Blatant rip off the more you pay today!

greenlightluke

Hi,

O2 and other mobile networks lose money if customers are upgrading every 12-18 months as they have to buy more stock more often. Which is why paying up-front costs ends up being more in O2's pocket, it is to encourage that customer to wait it out.