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Who Benefits From The 24 Month Phone Contract?
Heading back to 2004, if you took out a mobile phone contract, you could only guarantee it would be for a 12 month period. You would most probably have been given a free mobile phone by your local mobile phone dealer and also have been given a pack of inclusive minutes along with a pre determined text allowance. When you got in to the 11th month of the contract, the network provider would have got into contact with you and offered you another free mobile phone trying to get you to register for another 12 month agreement.
As 2006 approached, numerous retailers and mobile phone network providers started to substitute the 12 month agreement with the longer 18 month period agreement, which meant that the customer would have to keep their phone for approximately 6 months longer than in previous years. There are two big winners from the longer 18 month term mobile phone agreement, and you could be sure that the customer is not one of them.
Understandably, the biggest winner in the longer term contract length would be the mobile phone network provider, as in theory, they have now reduced their costs regarding providing customers with free mobile phones by around one third. Another silent winner was also the mobile phone insurance providers, as a lot more buyers decided to get mobile phone insurance to protect their phones, since they knew that there was a longer period where it might get lost or thieved, without any chance of another free mobile phone before the end of the 18 month contract.
Within a year of the new longer mobile phone contracts, the network companies altered the guidelines once again by increasing agreement time periods by another 6 months to a long 24 month period. Again the network providers decreased their prices since they only provide you with a free mobile phone every two years, their savings must run in to the millions each year. With the networks saving cash, the customer is left to take the gamble of protecting their phone with mobile phone insurance, or opting to take the risk of it lasting two complete years and not go missing, thieved or broken over the 24 month time period.
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