O2 New Retention Tariff Discount 500 / Discount 750

eljmayes

spinningsheep wrote: »

the thing to remember is that all networks are a business. What,if anything they offer you as a retention deal will depend on how much revenue they have made from you during your previous contract term, against how much the last phone you had was worth. eg:

You had a Samsung E900 worth £200 sim free
Your contract was £25 a month over 12 months (no extra call charges)

Total revenue = £ 300

Phone cost = £200

Total network profit = £100

Divided by the year, they have made £8.30 a month from you, which in the great scheme of things isn't a great deal of money, and if you had a more expensive handset worth say £300+, in fact they are still yet to make ANY profit from you at all, so you then see why they may not be falling over themselves to offer you another £300 phone which technically you haven't finished paying for. I know it seems like a kick in the teeth when you have been "loyal" to a network, but at the end of the day, business is business.

I don't think that O2 are buying in the lower end phones for more than say thirty quid cost price, even a top of the range model (excluding the Iphone) would not cost them anymore than one hundred quid to buy in as they buy huge numbers.
At the moment I am having my 25 quid tariff being paid off for three months by O2 as they haven't been able to give me a correct bill in 9 months since my last upgrade. So in theory they are able to offer me a 300 quid contract for 225 quid and they are still making profit on top of that.
My advice to anyone haggling with O2 is to go for a 12 month contract and hope to get unlimited texts and 500 mins for about 20-25 quid a month. Their 25 quid a month SIM only deal is about the same, and you aren't locked in for 12/18 months.