Mobile operators should stop 'bundling' phones and airtime

kangoora

Saw this today on BBC website https://www.bbc.co.uk/news/technology-53930777 . Basically it's saying mobile operators are ripping off people who don't change their contracts once their phone has been purchased at the end of the contract by not reducing their tariffs to an equivalent SIM-only deal.

I was thinking about this and there is a very, very simple answer. Don't allow phones to be bundled with airtime packages in an all-in-one payment unless the phone costs are clearly outlined with an effective stop date for the purchase of the physical device.

For example, iPhone 11 £45/month for 3 years, xyz calls/texts £15/month = Bundle cost of £60. At the end of 3 years the phone purchase is completed, payments on the phone stop and the owner reverts to the airtime package agreed. If the operators 'fiddles' the phone cost up then they take the risk people will end up on a low cost airtime deal at the end of 3 years OR if they 'fiddle' the cost of the airtime up then they end up selling the phone at a loss (or very small profit) and the consumer can just elect to switch to a cheaper SIM only deal after 3 years.

Sensible?

EssexExile

Just buy a phone and pay for using it separately.

molerat

Of course it would be sensible but the networks don't want that as it would lose them a lot of money. The useless regulator, as with any of the OFxxxs, just tinkers around the edges enforcing stupid changes to be "seen to be doing" but actually doing no real good for the consumer.  No one else can get away with it, imagine the electricity companies being allowed mid contract increases and just think of buying a car over 3 years for £500 per month with unlimited petrol and at the end of the 3 years you carry on paying the same even though the car was fully paid for.  The mobile networks prey on the gullible and about time they were brought into line.

kangoora

Well, 1 out of 3 people understood the original point - about average i'd guess

ballyblack

Do not change the arrangements!
If this ends ? my SIM only deal  will probably get more expensive as lazy bundle customers  subsidise a customer like me!

simax

Phones and airtime shouldn’t be separated - operators should alert customers 30-60 days before min term expiry of what their options are and what will happen if they do nothing (ie: will change to rolling contract of £xx a month 30 days after expiry for example). 

We don’t live in a nanny state. All that will happen is that prices will go up for everybody if it’s too tightly regulated and then everyone will moan about that.....

JJ_Egan

Its  the fact that most users cannot or do not want to pay for a phone outright .

Yes end contract and on to a standard tariff  not only phones but gas electric broadband etc .

dcfc67

Vodafone did text me a couple of weeks before end of my handset contract stating it would continue at the same price £19.
Went on chat and it came down to £8.80 with11GB data unlimited calls and texts

A_Lert

I thought they already had to list the phone and service costs separately?

[Deleted User]

JJ_Egan said:

Its  the fact that most users cannot or do not want to pay for a phone outright .

Yes end contract and on to a standard tariff  not only phones but gas electric broadband etc .

Quite a statement!
If the network wants to provide a interest free loan so be it but most people I know are on sim only.

JJ_Egan

Thats nonsense as the facts show the majority are not on sim only .