Mobile Phone Opinions

The mobile phone industry is a strange beast where handset costs are offset against long contracts, which over time repay the value of the initial hardware.

There aren't many tech products that fall into this type of arrangement except maybe your latest Sky box which you get for free or at a reduced cost in return for signing up to a 1-year contract.

Mobile phone contracts

The new Samsung Galaxy S5

When phones were basic and could only send text messages and make phone calls a 12-month line rental agreement was plenty of time for the mobile phone networks to recoup the costs of providing free hardware at the start of the agreement.

Today though the mobile phone is a different animal and the latest smartphones are a clever as your home PC, laptop or dare I say Mac!

In fact in many ways they are more cutting edge with all of those electrical components having to be miniaturized to fit inside a shell that can actually still be mobile.

This has of course driven up the value of such devices which has ultimately led to the 24-month contract.

In fact if we look at the handset only prices for today's smartphones it would probably shock no-one to see a price tag of between £400 and £700.

Are 24-month contracts too long?

Win a mobile phone

I absolutely hate the idea of a 24-month contract! It is indeed the norm but that is an awful long time to be tied to one phone as you see new mobile phones released and shown off by your family and friends.

But, having said this I think we have to get used to the idea that if we want a new product mid-contract then we will have to pay for it. After all when everyone owned a laptop, which was the prominent situation before smartphones and tablets, if you wanted a new one then you went out and paid for it, at full cost.

So, unless you use a laptop for work a mobile phone will probably have replaced this piece of tech altogether, hence one cost has been replaced by another.

Buying a new phone mid-contract

If you have taken the free handset option and would like to update it mid-contract then there a few options open to you.

Buy a smartphone SIM free at full cost.
Take out another contract.
Ask for an early upgrade from your contract provider.

All of these options will likely end up costing you about the same amount of money. But, if you don't want to pay up front for a new handset then taking out another phone contract is an option. You could even reduce the line rental on your old contract to the lowest possible option and then consider it as a small loan paying itself off over the remaining term.

Maybe it is time for the mobile phone networks to introduce a more sensible and ultimately helpful solution.

They could offer for you to keep the same number, re-sign a 24-month contract from the day you update to your new phone and add a repayment amount onto your existing contract.

This way everyone would win, you get your new handset, you pay for it on your monthly bill in small installments and the network gets your business guaranteed for another 24-months.

Opinions?

So what do you think about this whole topic?

Welcome to my new forum where I (Michael Brown) will be expressing my personal views on mobile phones, smartphones and apps.

Michael Brown biography

Michael Brown

I have been in the telecommunications industry for almost two decades and I have always been a lover of new tech.

I was introduced to the world of UK mobile phones when I became a sales assistant at a Vodafone shop in a busy city center.

This was a key element in learning in-depth the mobile phone technology of the day as the high footfall ensured you encountered almost every problem, query and request. I dealt with every type of customer from young to old and thoroughly enjoyed the experience.

After several years I had the opportunity to apply for managerial training and was selected to participate in the 10 week training course, followed by 3 months working next to a flagship stores manager.

I then managed a team of Vodafone staff in a retail store where I became well known for my knowledge, helpfulness and non-aggressive approach to sales.

After many years I took a break from the nine-to-five working life and lived in Canada followed by a few more years in the UK before settling in Bulgaria which had by then become part of the European Union.

Since this time I have worked again in the mobile phone industry on a consultancy to Mobilephones.com who sell mobile phone deals in the UK.

I now spend most of my time writing about phones, mobile phone releases and smartphone apps.