Ofcom ban 3 year contracts

Everything Goes · 27-05-2011, 16:41

Bound to disappoint the network operators but Ofcom has decided to ban 3 year contracts. They must also offer 12 month contracts under EU law.

http://www.guardian.co.uk/money/2011...year-contracts

ACU · 27-05-2011, 16:47

I didnt realise 12 months contracts are no longer an option. I believe they have always been offered. They havent been as widely advertised, but have always been available.

I am not sure allowing networks to offer 3 year contracts is a good thing. Its a good thing that they must still offer 12 month contracts. If someone wants to sign a 3 year contract, then let them. The main thing was that we didnt lose 12, 18 month contract terms.

Gormond · 27-05-2011, 17:02

Quote:

Originally Posted by ACU

I didnt realise 12 months contracts are no longer an option. I believe they have always been offered. They havent been as widely advertised, but have always been available.

I am not sure allowing networks to offer 3 year contracts is a good thing. Its a good thing that they must still offer 12 month contracts. If someone wants to sign a 3 year contract, then let them. The main thing was that we didnt lose 12, 18 month contract terms.

Last 2 phones I have got on O2 were only available on 18 and 24 month, no 12 month option.

ACU · 27-05-2011, 17:11

Quote:

Originally Posted by Gormond

Last 2 phones I have got on O2 were only available on 18 and 24 month, no 12 month option.

If you rang up, and asked for a 12 month contract, they would give you a price. This is the case with vodafone..they will advertise 18/24 month deals. You would have to ring them up and ask for a 12 month deal.

Awshum-Yawn · 27-05-2011, 17:20

I think free handsets will eventually disappear at least at the mid-high range price bracket.

paulbrock · 27-05-2011, 17:23

awesomeness. 2 years is too long IMHO, but 3 would be ridiculous.

ACU · 27-05-2011, 17:25

Quote:

Originally Posted by Awshum-Yawn

I think free handsets will eventually disappear at least at the mid-high range price bracket.

You will always be able to get a free phone. It will just be a basic phone. I dont think this will change, certainly not in the near future.

Quote:

Originally Posted by paulbrock

awesomeness. 2 years is too long IMHO, but 3 would be ridiculous.

I agree 2 years is too long. 18 months also feels a bit long but bearable. 12 months was ideal. The thing with a 3 year deal, if someone wanted it, at least it was available.

Tassium · 27-05-2011, 18:06

Any contract for a service is anti-competitive, fair enough for a credit agreement but the service itself should always be rolling.

But for some reason new tech business have managed to get away with this kind of thing.

alan.w · 27-05-2011, 19:27

Quote:

Originally Posted by paulbrock

awesomeness. 2 years is too long IMHO, but 3 would be ridiculous.

3 years is like 5 generations of iphone

TheBigM · 27-05-2011, 19:33

I think the ban is a bad idea. I'm not saying 3 year contracts are a good thing but the decision and choice should be left up to the buyer. They know full well what they are getting into and it wasn't a big deal anyway, how many 36 month contracts were being offered?

Trust OfCom to go big on tiny issues and avoid the problems that matter.

Agent F · 27-05-2011, 19:45

Quote:

Originally Posted by ACU

If you rang up, and asked for a 12 month contract, they would give you a price. This is the case with vodafone..they will advertise 18/24 month deals. You would have to ring them up and ask for a 12 month deal.

They shouldn't omit that then. Most people wouldn't think 'oh they do offer 12 months contracts but I'll have to phone and ask' - you'd naturally assume that what they were advertising is all they were offering. So a little disingenuous if what you say is true.

I'd gladly opt for a 12 month contract over an 18 month one.

Charcole911 · 27-05-2011, 19:55

So why are 6 month contracts not available? If the operator offers a good service I'd have no problem going into a 6 month contract, then staying with them.

Matt D · 27-05-2011, 20:19

Quote:

Originally Posted by alan.w

3 years is like 5 generations of iphone

Except it isn't...

coolmark18 · 27-05-2011, 20:37

Orange only do 12month contracts on a SIM only basis.

moox · 27-05-2011, 22:07

Quote:

Originally Posted by Tassium

Any contract for a service is anti-competitive, fair enough for a credit agreement but the service itself should always be rolling.

But for some reason new tech business have managed to get away with this kind of thing.

If you want a rolling contract, they're freely available on all networks - you will just have to obtain your own phone or pay for one at full price. I am on one.

Same for internet access - plenty of ISPs offer one month contracts, but again, you'll have to pay any installation/cancellation fees. I am on such a plan.

I don't understand your point. Do you think the networks should be obligated to give you a free phone without being allowed to force you to stay with them for enough time to recoup the cost of the handset?

noise747 · 27-05-2011, 22:07

Quote:

Originally Posted by Everything Goes

Bound to disappoint the network operators but Ofcom has decided to ban 3 year contracts. They must also offer 12 month contracts under EU law.

http://www.guardian.co.uk/money/2011...year-contracts

Never knew there was 3 year contracts, 2 years is bad enough, no way would I go for three years.

noise747 · 27-05-2011, 22:10

Quote:

Originally Posted by Awshum-Yawn

I think free handsets will eventually disappear at least at the mid-high range price bracket.

Not a bad idea to be honest, then monthly payments will be cheaper. but to be honest that phone you think is free is not free, you still pay for it in the end.

It is too easy now for people to update their phone every 12 months or 24 months, no wonder there are so many phones being chucked away. some people update because they can, not because they need to.

noise747 · 27-05-2011, 22:12

Quote:

Originally Posted by Charcole911

So why are 6 month contracts not available? If the operator offers a good service I'd have no problem going into a 6 month contract, then staying with them.

Because you would have to pay for the phone outright. you can get monthly sim only contracts, but going for a 12 month one gives you a better deal.

i went for a 12 month sin only deal with Vodafone, now I gone for a 2 year contract ( why I have no idea), once this contract is up I will go back to a sim only contract if my wildfire is still working

Trelly · 27-05-2011, 23:53

Quote:

Originally Posted by Matt D

Except it isn't...

True more like 6

ram jam · 28-05-2011, 00:04

Quote:

Originally Posted by alan.w

3 years is like 5 generations of iphone

And 20 generations of android

ram jam · 28-05-2011, 00:06

Quote:

Originally Posted by Trelly

True more like 6

1 a year over 3 years was 3 when i went to school!!!!

Matt D · 28-05-2011, 00:11

Quote:

Originally Posted by Trelly

True more like 6

So far Apple has released one iPhone per year, four generations over four years.

And it's hardly the only company to have an annual product cycle (look at Samsung and the rest...).

Bagsbunny · 29-05-2011, 16:37

I don't know of anybody on a three-year contract. I work for Tmobile, and the shortest contract we offer on a handset deal is 18 months for new customers. You have to remember that a network has to recoup the cost of the handset in the contract: and the average real value of the handset has rocketed in recent years (students on iphone contracts, for instance). Forcing networks to offer 12 month contracts is all very well, but all they'll do is price the contract accordingly. Why don't people understand that there's no such thing as a "Free mobile 'phone"?

carguy143 · 29-05-2011, 18:01

I've never seen a 3 year contract in the uk although they seem to be the norm over in the US where you usually also have to pay for the phone too. Three only offer 24 month contracts on their website for phone and iPad deals. I've seen 12month contracts on the Orange website but they are pretty hidden as the first thing their online store shows is 24 month contracts, it just takes some digging around to find them.

ACU · 30-05-2011, 18:20

Quote:

Originally Posted by Agent F

They shouldn't omit that then. Most people wouldn't think 'oh they do offer 12 months contracts but I'll have to phone and ask' - you'd naturally assume that what they were advertising is all they were offering. So a little disingenuous if what you say is true.

I'd gladly opt for a 12 month contract over an 18 month one.

You right they shouldnt.

The only issue with a 12 month contract, is that your monthly line rental/price for the handset will be very high. Which is probably why they arent advertised.

27-05-2011, 16:41	#1
Everything Goes Forum Member Join Date: Mar 2002 Location: In the future.... Posts: 11,259	Ofcom ban 3 year contracts Bound to disappoint the network operators but Ofcom has decided to ban 3 year contracts. They must also offer 12 month contracts under EU law. http://www.guardian.co.uk/money/2011...year-contracts

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27-05-2011, 16:47	#2
ACU Forum Member Join Date: Aug 2009 Posts: 7,916	I didnt realise 12 months contracts are no longer an option. I believe they have always been offered. They havent been as widely advertised, but have always been available. I am not sure allowing networks to offer 3 year contracts is a good thing. Its a good thing that they must still offer 12 month contracts. If someone wants to sign a 3 year contract, then let them. The main thing was that we didnt lose 12, 18 month contract terms.

27-05-2011, 17:02	#3
Gormond Forum Member Join Date: Jul 2006 Location: Scotland Posts: 15,714	Quote: Originally Posted by ACU I didnt realise 12 months contracts are no longer an option. I believe they have always been offered. They havent been as widely advertised, but have always been available. I am not sure allowing networks to offer 3 year contracts is a good thing. Its a good thing that they must still offer 12 month contracts. If someone wants to sign a 3 year contract, then let them. The main thing was that we didnt lose 12, 18 month contract terms. Last 2 phones I have got on O2 were only available on 18 and 24 month, no 12 month option.

27-05-2011, 17:11	#4
ACU Forum Member Join Date: Aug 2009 Posts: 7,916	Quote: Originally Posted by Gormond Last 2 phones I have got on O2 were only available on 18 and 24 month, no 12 month option. If you rang up, and asked for a 12 month contract, they would give you a price. This is the case with vodafone..they will advertise 18/24 month deals. You would have to ring them up and ask for a 12 month deal.

27-05-2011, 17:20	#5
Awshum-Yawn Guest Join Date: Oct 2009 Posts: 1,651	I think free handsets will eventually disappear at least at the mid-high range price bracket.

27-05-2011, 17:23	#6
paulbrock Forum Member Join Date: Apr 2002 Location: Wapping, London Posts: 16,222	awesomeness. 2 years is too long IMHO, but 3 would be ridiculous.

27-05-2011, 17:25	#7
ACU Forum Member Join Date: Aug 2009 Posts: 7,916	Quote: Originally Posted by Awshum-Yawn I think free handsets will eventually disappear at least at the mid-high range price bracket. You will always be able to get a free phone. It will just be a basic phone. I dont think this will change, certainly not in the near future. Quote: Originally Posted by paulbrock awesomeness. 2 years is too long IMHO, but 3 would be ridiculous. I agree 2 years is too long. 18 months also feels a bit long but bearable. 12 months was ideal. The thing with a 3 year deal, if someone wanted it, at least it was available.

27-05-2011, 18:06	#8
Tassium Forum Member Join Date: Mar 2009 Location: It's Grim Posts: 24,412	Any contract for a service is anti-competitive, fair enough for a credit agreement but the service itself should always be rolling. But for some reason new tech business have managed to get away with this kind of thing.

27-05-2011, 19:27	#9
alan.w Forum Member Join Date: Jun 2001 Location: Southwick Brighton West Sussex Posts: 1,246	Quote: Originally Posted by paulbrock awesomeness. 2 years is too long IMHO, but 3 would be ridiculous. 3 years is like 5 generations of iphone

27-05-2011, 19:33	#10
TheBigM Forum Member Join Date: Aug 2004 Location: moon Posts: 12,983	I think the ban is a bad idea. I'm not saying 3 year contracts are a good thing but the decision and choice should be left up to the buyer. They know full well what they are getting into and it wasn't a big deal anyway, how many 36 month contracts were being offered? Trust OfCom to go big on tiny issues and avoid the problems that matter.

27-05-2011, 19:45	#11
Agent F Forum Member Join Date: May 2007 Posts: 37,641	Quote: Originally Posted by ACU If you rang up, and asked for a 12 month contract, they would give you a price. This is the case with vodafone..they will advertise 18/24 month deals. You would have to ring them up and ask for a 12 month deal. They shouldn't omit that then. Most people wouldn't think 'oh they do offer 12 months contracts but I'll have to phone and ask' - you'd naturally assume that what they were advertising is all they were offering. So a little disingenuous if what you say is true. I'd gladly opt for a 12 month contract over an 18 month one.

27-05-2011, 19:55	#12
Charcole911 Inactive Member Join Date: Mar 2010 Location: Fife Posts: 6,078	So why are 6 month contracts not available? If the operator offers a good service I'd have no problem going into a 6 month contract, then staying with them.

27-05-2011, 20:19	#13
Matt D Forum Member Join Date: Jun 2007 Location: Cambridge Posts: 13,064	Quote: Originally Posted by alan.w 3 years is like 5 generations of iphone Except it isn't...

27-05-2011, 20:37	#14
coolmark18 Forum Member Join Date: Nov 2004 Location: Glasgow, Scotland Posts: 1,141	Orange only do 12month contracts on a SIM only basis.

27-05-2011, 22:07	#15
moox Forum Member Join Date: Oct 2004 Posts: 14,645	Quote: Originally Posted by Tassium Any contract for a service is anti-competitive, fair enough for a credit agreement but the service itself should always be rolling. But for some reason new tech business have managed to get away with this kind of thing. If you want a rolling contract, they're freely available on all networks - you will just have to obtain your own phone or pay for one at full price. I am on one. Same for internet access - plenty of ISPs offer one month contracts, but again, you'll have to pay any installation/cancellation fees. I am on such a plan. I don't understand your point. Do you think the networks should be obligated to give you a free phone without being allowed to force you to stay with them for enough time to recoup the cost of the handset?

27-05-2011, 22:07	#16
noise747 Forum Member Join Date: Dec 2007 Location: Herefordshire Posts: 22,810	Quote: Originally Posted by Everything Goes Bound to disappoint the network operators but Ofcom has decided to ban 3 year contracts. They must also offer 12 month contracts under EU law. http://www.guardian.co.uk/money/2011...year-contracts Never knew there was 3 year contracts, 2 years is bad enough, no way would I go for three years.

27-05-2011, 22:10	#17
noise747 Forum Member Join Date: Dec 2007 Location: Herefordshire Posts: 22,810	Quote: Originally Posted by Awshum-Yawn I think free handsets will eventually disappear at least at the mid-high range price bracket. Not a bad idea to be honest, then monthly payments will be cheaper. but to be honest that phone you think is free is not free, you still pay for it in the end. It is too easy now for people to update their phone every 12 months or 24 months, no wonder there are so many phones being chucked away. some people update because they can, not because they need to.

27-05-2011, 22:12	#18
noise747 Forum Member Join Date: Dec 2007 Location: Herefordshire Posts: 22,810	Quote: Originally Posted by Charcole911 So why are 6 month contracts not available? If the operator offers a good service I'd have no problem going into a 6 month contract, then staying with them. Because you would have to pay for the phone outright. you can get monthly sim only contracts, but going for a 12 month one gives you a better deal. i went for a 12 month sin only deal with Vodafone, now I gone for a 2 year contract ( why I have no idea), once this contract is up I will go back to a sim only contract if my wildfire is still working

27-05-2011, 23:53	#19
Trelly Forum Member Join Date: Aug 2005 Location: Harrogate, North Yorkshire Posts: 3,677	Quote: Originally Posted by Matt D Except it isn't... True more like 6

28-05-2011, 00:04	#20
ram jam Forum Member Join Date: Jul 2007 Location: Barnsley Posts: 272	Quote: Originally Posted by alan.w 3 years is like 5 generations of iphone And 20 generations of android

28-05-2011, 00:06	#21
ram jam Forum Member Join Date: Jul 2007 Location: Barnsley Posts: 272	Quote: Originally Posted by Trelly True more like 6 1 a year over 3 years was 3 when i went to school!!!!

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Ofcom ban 3 year contracts

28-05-2011, 00:11	#22
Matt D Forum Member Join Date: Jun 2007 Location: Cambridge Posts: 13,064	Quote: Originally Posted by Trelly True more like 6 So far Apple has released one iPhone per year, four generations over four years. And it's hardly the only company to have an annual product cycle (look at Samsung and the rest...).

29-05-2011, 16:37	#23
Bagsbunny Forum Member Join Date: May 2010 Location: Charlton, SE7 Posts: 359	I don't know of anybody on a three-year contract. I work for Tmobile, and the shortest contract we offer on a handset deal is 18 months for new customers. You have to remember that a network has to recoup the cost of the handset in the contract: and the average real value of the handset has rocketed in recent years (students on iphone contracts, for instance). Forcing networks to offer 12 month contracts is all very well, but all they'll do is price the contract accordingly. Why don't people understand that there's no such thing as a "Free mobile 'phone"?

29-05-2011, 18:01	#24
carguy143 Forum Member Join Date: Sep 2005 Location: Leyland Posts: 1,971	I've never seen a 3 year contract in the uk although they seem to be the norm over in the US where you usually also have to pay for the phone too. Three only offer 24 month contracts on their website for phone and iPad deals. I've seen 12month contracts on the Orange website but they are pretty hidden as the first thing their online store shows is 24 month contracts, it just takes some digging around to find them.

30-05-2011, 18:20	#25
ACU Forum Member Join Date: Aug 2009 Posts: 7,916	Quote: Originally Posted by Agent F They shouldn't omit that then. Most people wouldn't think 'oh they do offer 12 months contracts but I'll have to phone and ask' - you'd naturally assume that what they were advertising is all they were offering. So a little disingenuous if what you say is true. I'd gladly opt for a 12 month contract over an 18 month one. You right they shouldnt. The only issue with a 12 month contract, is that your monthly line rental/price for the handset will be very high. Which is probably why they arent advertised.