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MikeRox said:
phinch1 said:

its not really a free phone if in the end your paying 2-3x the amount of it, when line rentals really are about £6:50 for 250 mins 5000 texts and 500 mb data

also its changing now, newer contracts are being set up with two contracts and one direct debit, and one is a credit agreement for the phone, so they are no longer free, starting with the s4

It IS a free phone. It's nothing to do with the actual contract people sign up for with the network provider. Working for a phone shop I'd have thought you'd know that!? 

Damn that extra credit agreement must be for people with seriously poor credit ratings. My mum upgraded to an S4 last month with O2. There was no extra agreement with that Just £37.00 per month for unlimited minutes, texts and 500mb data. Yes she could have that for £21 per month on a 12 month contract if she didn't get a phone with it, but that still only works out at £384 for the Galaxy S4 which is cheaper than buying one Sim Free.

However, whether you're paying more in the long run through your line rental or not is irrelivant, the phone is still free unless you have one of those additional credit agreements you speak of, but I've never seen that anywhere and would never sign up to that. If you're telling customers at your work it's not a free phone and that it is part of the contract, you are mis-selling to them and it's no wonder the phone networks have so many problems with people refusing to pay their line rental 14 months down the line when they've broken their phone because the network won't replace the handset.

Look at Littlewoods etc. They're "interest free" but you pay more for the product in the initial purchase price. Doesn't alter the fact that it's interest free. Again you still fail to address the fact that there is no up front cost.

Look at the cheap Xbox 360s in the US. The console is what $99? You more than pay for it across the 2 years you have to pay $14.99 or whatever it is for the special Xbox Live sub they come with, but the console is still $99. That is the up front cost, that is all the person getting it cares about at the time. I don't doubt Xbox One will adopt a similar strategy in the long term, and you know what? It'll sell a lot better when it does.

o2 and tesco mobile are the 1st to do the credit agrement act, its nothing to do with having poor credit, its because customers dont't like being in 2 year contracts any more so the way this works out is,  you take out to contracts, with one direct debit £23.50 for the phone and £6:50 for the tariff = £30 contract all together, once you have paid of the valuation of the handset you can upgrade ignoring whats remaining of the contracts on the tarriff, YOU ARE PAYING for the phone now, it is not free