New Mobile Phone Contract seems to be a 'loan'

ProDave

Just to be clear, what is the concern here?

It seems to me they are loaning you the money to buy the phone and you pay it back as agreed by the contract.

Are you concerned that they are loaning you the phone and will have to give the phone back at the end of the period?  I am sure that is not the case.

PHK

It's odd, people complain when providers don't split the handset from the service. 
But they also complain are suspicious when the providers explicitly separate the handset loan and service element.

simax

Timalay said:

It's a sneaky was for them to get past the maximum 24-month contract agreement, by splitting the phone from the contract and having it as a finance agreement instead, whilst the contract itself is rolling.

Also, if a term was adjusted on the airtime that’s of material detriment (such as IDD charges going up etc), then with a device loan + airtime set up the network can just terminate your airtime without penalty but still hold you to the handset repayment…. with the old way of everything combined you got a free handset out of it….