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Upgrade Haggle

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I've had to upgrade my mobile because, as with my previous phones, it still works well, but the (un asked for) upgrades to applications have eaten up the internal memory. I can't transfer any of the apps to a nearly empty SD card. I have been with O2 since about 1990. There is an O2 mast on the opposite side of our valley from my home, so reception is good.
First, I had paid for my old phone, and was out of contract since Nov 2018. 
My monthly tariff cost £13.47pm for 1GB data, unlimited calls and texts. My average monthly data usage is 248 mb. I don't use the phone for downloads or streaming, so not a great customer!
If I changed phone from O2, the tariff would increase to  £16 pm, for nothing extra, apart from an increase to 2 GB for data, but I don't need the increase.
If I moved to Tesco, who use the O2 network, the monthly tariff would be £9.50 for 1GB data, 5000 mins of calls and 5000 texts. More than enough for my usage, and the data could be reduced to 500mb if I wanted.  
Contacted O2, and asked why, if I upgraded my phone with them, my tariff increases for no extra benefit, and pointed out that Tesco would meet my needs for £6.50 per month less, saving £78 pa.
O2 offered a 24 month contract at £17 pm, with a £1 pm rebate, and the phone that I wanted at zero cost, saving £148 over the two years, offset by the £2,53 increase in the monthly tariff. Net saving over 2 years of £80, and matching the total cost of the Tesco tariff when the cost of the phone is included.
It looks like I'll be calling to talk about the tariff in 24 months time, but happy with the deal for now.

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