The Samsung Galaxy S4, quite possibly the most popular Android smartphone to hit the scene, will put you back over 500 quid if you buy it contract-free, but if you go with a long-term plan and get the device for nil you may be hit with sneaky fees that have you paying even more in the end.
The deal is that when phones like the Samsung Galaxy are sold through a network provider, they are essentially subsidized to encourage you, the buyer, to pay nothing or a very small amount upfront, but legally bind yourself into a 12, 24, or even 36-month contract of payments to help even things out.
It might seem like a better deal at first to go with the contract, and certainly for some it is the only option, but if you have the option to pay your dues upfront and buy the phone outright you may come up on top in the end. For all the initial glory of the contract, for many users they can contain so many hidden fees, surprise charges, and billing add-ons, that it ends up being a pricey hole in your pocket.
The Samsung S4, for example, is offered by Three for free under the stipulation of a 24-month contract and a £35 monthly fee, with add-ons. For a one-year contract, you could go to Vodafone and pay £120 outright for the phone, plus £43 a month. It’s all a question of how tied down you are willing to be.
Don’t even think that getting out of these contracts is an option - doing so may ruin your credit and cost you hundreds of pounds in early termination fees. Or you could take the plunge and buy the phone upfront for £549 from Carphone Warehouse, purchase a data plan for next to nothing from another company, and call it a day.
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But thanks to one ingenious UK provider of SIM-only packages, there is another choice. When scoping out, say, the best deal for the new iPhone 5 that will inevitably one day bring you untold joy and a lifetime of happy phone ownership, you will not necessarily have to tie yourself down to a concrete contract. There’s at least one way around that, and it’s called GiffGaff, a service which charges a mere £12 a month for unlimited everything, which for an iPhone is golden.
But this option also takes into account you initially purchasing the phone for around £549…making the deal a little less sweet, but evening out at around £35 per month of as much 3g data as you want. GiffGaff is the ideal if you already own a SIM-only smartphone and are simply looking for data/talk time, or if you can find one for a nice price and don’t want to lock in to a contract.
The bottom line with the contract/no-contract debate is that all told, the finances tend to even out in the end after all is said and done. It’s the initial cost or contract signature that makes the difference. If you can afford to shell out at first, you might save yourself some dough and have the added important benefit of being agreement-free, which gives you the freedom to change providers, locations, plans, and anything else you might want to.
If you want the free phone and are willing to swallow the fees, a long-term contract isn’t the end of the world - just make sure to read the fine print.
Faizan Ahmad About the Author:
This article is posted by Faizan who is the Author and Founder of TechSenser. He is a Professional Blogger from India and a passionate writer about Technology, Gadgets, How-to-Guides, etc. You can connect him on Google+.