You don't get something for nothing - right?

asutton709

Hi,
I have been looking around for a better deal for my phone and came across this SIM only deal from mobile shop.com

http://mobileshop.co.uk/mobile-phones/bt-mobile/contract-mobile-phones/btmobile-sim-only.php/PBTMOBSIMS0002#

Now I know very little about mobile phones but it seems to me with this deal you pay them £27 line rental a month which they give you back over the 12 month contract in the form of cash back equal to this line rental, and they give you 150mins cross network and 1000mins to a nominated landline.(certain restrictions apply)

So if I am happy to keep my old phone and I can unlock it following the advice in the threads, this deal gives me competitively priced call costs with 150mins cross network thrown in.

So what I would like to know is a) where are they making their cash - is it from the interest they make from your money while it is in their hands, or do they hope you go over 150mins and then pay their charges - which incidentally seem quite reasonable at 10p min landline/ 30p min other networks.
and b) what happens after the 12 months are up in deals like this.
and c) am I missing something?
cheers

gizmoleeds

asutton709 wrote:

So what I would like to know is a) where are they making their cash - is it from the interest they make from your money while it is in their hands, or do they hope you go over 150mins and then pay their charges - which incidentally seem quite reasonable at 10p min landline/ 30p min other networks.
and b) what happens after the 12 months are up in deals like this.
and c) am I missing something?
cheers

a) - Customers who like the service and stay with them
- Customers who go over the free calls/minutes
- Other customers not on a cashback deal

b) - You pay the full line rental (or port your number elsewhere)

c) - Make sure you get it from a relaible retailer. Some have gone bust owing people cashback or make it hard to get it. I don't know much about mobileshop.com I'm afraid so can't comment here.


Also, bear in mind 3 do some deals like this where you a phone for next to nothing too. IMO this is a better deal (and is with carphone warehouse):

http://www.carphonewarehouse.com/commerce/servlet/gben-pd-ProductDisplay?PN=NETWORKS.AUG66309MFLR&origin=SPECIALOFFER

You pay £90 over a year for a phone and 500 minutes/100 texts per month. With quidco you can claim a further £25 back (someone elase would have to give you details on how to do this).

JimArnold

If you are happy with your phone the first thing to do is to give your current provider notice.

I got 3 calls (from Vodaphone) each offering a better deal if I didn't go - either 40% off and a new phone or over 50% off if I stuck with my phone - and I'm not a big user.

I mmight do a bit better on a cashback deal but it can be a lot of hassle and sevral have gone bust - look up foward cellular !

JimArnold

Oh I missed out the main bit
the shop make money because the network pay them for every new customer they sign up - this is usually used to subsidise a new phone - that's how you get a £200 phone for "free". There are usually requirements to send in one or more bills at specific times and many people fail to meet these conditions so don't get the cash back

The network makes money as previously posted from people who go over etc

JenniO

I feel really daft here but I'm really new to this whole 'cash vouchers' on month 4 and 10 and 12 etc stuff. Can someone explain to me how cash back via vouchers works with networks? I just feel a bit too overwhelmed to make an informed decision as to getting a new tariff for my current orange phone. thanks! any advice appreciated!!

JenniO

imsi

Basically, JenniO, you are given vouchers along with the phone when it is delivered. In your example, you send the correct voucher and your bill for the 4th month of the contract to your supplier. They then credit your bank account for the vouchers worth within a certain number of days. Same again after month 10 and 12.
If you forget to send it off you don't get the money! Which I guess is what they are hoping.