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why is it cheaper to get a new contract rather than an upgrade


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Old 13-12-2012, 11:47
ste1969
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my wifes contract has just come to an end and it seems that she can get a galaxy 3 on new contract for £20 a month with free handset but to upgrade it will cost £31.
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Old 13-12-2012, 13:08
jabbamk1
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Um, first of all would you mind posting that link? S3 for £20? really!

The reason is because you go for an upgrade directly to the network. The network prices are higher than that of third parties because the third parties just buy the mins/texts/data and don't have to many outgoing costs like building the network bla bla bla. Also, one network may be higher cost than the other. E.g vodafone price their phones higher than t-mobile.

So lets say you're with vodafone and want to upgrade they'll probably offer you whats on the website for new customers joining vodafone. This is the same deal for upgrade and new customers. So It's not a better deal to join as a new customer. it would only be a better deal if you joined a different network or via a third party who can afford to keep prices low.

It's always worth asking the network if they can do any better. Threaten to leave if they don;t. They;ll usually come back with something better but if they don't then just take the new contract and cancel your old one.

So it's not cheaper to join as a new customer via the same network. But it's cheaper to join via a third party or different network with a similar deal.
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Old 13-12-2012, 13:40
pmidds
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Here's one:

http://www.buymobilephones.net/mobil...ernet/13733035
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Old 13-12-2012, 14:05
jabbamk1
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nice one, one free swapable as well. Shame about the minutes and data though. But then again what do you expect for £20 a month.
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Old 13-12-2012, 14:41
ste1969
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seems to be the same deal that i saw dialaphone doing
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Old 13-12-2012, 16:02
jwball
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One reason is due to the carrier subsidy for new customers.
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