12 month contracts

[Glenn]

Mobile phone providers will have to offer 12-month contracts under EU rules set to be enforced by the telecommunications regulator.

Ofcom will ensure UK operators offer year-long tie-ins by the end of May (see the Cheap Mobiles guide).

It is hoped the new ruling will make it easier for consumers to keep up-to-date with the latest mobile gadgets and be able to search for cheaper deals more frequently.

The rising popularity of smartphones has resulted in lengthier contracts that tie users in for up to two years.

Consumers are generally only offered 18-month or 24-month contracts at present when buying the latest high-tech handsets.

Tesco Mobile is the only provider to sell the iPhone4 on a 12-month contract (see the Cheap iPhones guide).

While shorter terms will give users greater flexibility, it is likely they will be more expensive per month.

An Ofcom spokeswoman says: "The European Telecoms Package has to be transposed into UK law by the end of May.

"Under it, contract lengths must not exceed 24 months and consumers should have the option to subscribe to a 12 month contract."

A consultation is due to begin in spring to decide the finer detail and when exactly the requirement will start.

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[Rik]

Who creates these rules that end up costing us more? It's like the split of sport between Sky & ESPN. Sky didn't reduce their charges, so consumers now pay more to see the same amount of sport.

[pctech]

What most people fail to grasp is that a 'free' phone really isn't and you are acquiring the hardware on credit.

[Simon]

Indeed.

[Technical Ben]

Who creates these rules that end up costing us more? It's like the split of sport between Sky & ESPN. Sky didn't reduce their charges, so consumers now pay more to see the same amount of sport.

This one doesn't though. It give the option to not have a 2 year contract. For me, I'd rather pay more and not be on a long contract (hint hint IDNet ).
It also means people are not tied in to overly long and ridiculous contracts. If portability was possible, less people would complain.

[Technical Ben]

What most people fail to grasp is that a 'free' phone really isn't and you are acquiring the hardware on credit.

I've had at least 2 friend get mobile phone deals becaue they get "free xbox/ps3!". I tried to reason with them, I did. But they got them. At £70 or £40 a month, for two years, they got a phone they swapped in 6 months, and a games console they got bored of and sold a month later. Compared to a £20 contract without the PS3 you could be paying for it 3 times over. 

[pctech]

I tried to watch this last night.

I turned it off half way through because it confirmed what I already knew, mobile phone salesmen are just like their double-glazing counterparts, the more money they get you to part with each month and the longer the duration, the biggerthe payday is for them and the networks compete on commission, its not about what the customer wants/needs at all but she was trying to get them to ask questions to get the right deal for the customer, until the way dealers and salesmen are paid changes, this won't happen.

[Rik]

All selling's the same, Mitch.

[Technical Ben]

I tried to watch this last night.

I turned it off half way through because it confirmed what I already knew, mobile phone salesmen are just like their double-glazing counterparts, the more money they get you to part with each month and the longer the duration, the biggerthe payday is for them and the networks compete on commission, its not about what the customer wants/needs at all but she was trying to get them to ask questions to get the right deal for the customer, until the way dealers and salesmen are paid changes, this won't happen.

Oh, I missed it. Forgot it was on.
One chap in my old call centre, had left his old job at a mobile phone sales\service centre. He said one customer complained her daughter got a £70 bill. It consisted of a £45 contract, and £45 worth of calls. However, it included something like 300 minutes free, and the cheapest call rate after that. However, the customer insisted on a "cheaper" contract. So under the customers request, they changed the contract to the 10 per month pay as you go. With no free calls, and a higher call rate, the sales incentive computer went into overdrive. The bill was estimated to go to £15,000 for the year, with the sales rep getting £1,500 in commission. 

[pctech]

I will always stick to pay as you go as I don't use it a great deal but akways ensure it has credit on so can use it if I need to.

[Gary]

I will always stick to pay as you go as I don't use it a great deal but akways ensure it has credit on so can use it if I need to.

I stick to 30 day Sim only Mitch, it works out fine and I don't have to remember to put credit on.

[Simon]

Same here.