02: 12m simplicity vs 18m contract

[Nipz]

Ok so i was thinking of what to do when with my contract when i upgrade.

If i go with the 12 month simplicity it works out as:

£499 (16GB iPhone)
+£240 (12 months x £20)
=£689

If i go with 18 month contract it works out as:

£169 (working off orange prices)
+£720 (18 months x £40)
=£889

Both tariffs are 600 minutes and unlimited texts.

What are your opinions?

Think if i go with the 12 month one at least i can upgrade every year!

 

[GeekGuys]

You can upgrade each year but will need to pay off the remaining contract (6 or 12 months) and you will still be paying O2 for benefit.

I am so glad I can now buy unlocked PAYG iPhone 4. OK, upfront cost is high, but over a year it is lower as you have stated. Also, I am on Simplicity iPhone 12 for £15 pcm. Includes unlimited 3G (soon to be 500Mb on iPhone tarrifs) and 300 mins (enough for me).

After a year, do the same again and sell iPhone on eBay. Works out cheaper but costly upfront.

Only issue I have is, when will O2 be delivering Micro SIM cards or will I be getting the scissors out

 

[Phil Lee]

O2 works out at £57.41 per month, Orange works out at £49.39 per month. It all depends on what you want really.

 

[Nipz]

O2 works out at £57.41 per month, Orange works out at £49.39 per month. It all depends on what you want really.

You work this out by breaking the upfront cost of the contract phone and adding it to the monthly fee?

 

[tallyho]

O2 works out at £57.41 per month, Orange works out at £49.39 per month. It all depends on what you want really.

Well yes but that's not an entirely fair comparison as the Orange figure is for an 18 month contract so you do have to pay an additional 6 months @ £40 per month (that's an additional £240).
The same period of service with O2 @ £20 per month is £120, and you don't have to pay that (who knows, in a year from now there might be an amazing deal that you want to switch to, to say nothing of a new iPhone...)

 

[Nipz]

I have just over a week to decide!

The simplicity seams a good deal! Are there any downsides to it?

 

[ethical]

The simplicity seams a good deal! Are there any downsides to it?

Less data? But we don't know that yet.

Personally I would go the simplicity route. I'd prefer to have a 12m contract than an 18m one, in case I really want to upgrade to the new iPhone next year. But...I think I might be forced to get a contract and a subsidized phone, because I can't afford the £599 straight out of the bag right now.

 

[Nipz]

Less data? But we don't know that yet.

Personally I would go the simplicity route. I'd prefer to have a 12m contract than an 18m one, in case I really want to upgrade to the new iPhone next year. But...I think I might be forced to get a contract and a subsidized phone, because I can't afford the £599 straight out of the bag right now.

Nah its the same plan just different prices because you pay more for the phone!

 

[jakub]

I have just over a week to decide!

The simplicity seams a good deal! Are there any downsides to it?

I posted this in the massive UK thread. I just downgraded my 18 month £35/mth Iphone contract that ended in Jan to Simplicity for Iphone. All it took was one phone call and I was on Simplicity as of midnight last night. I personally think it's a great deal with few downsides for me.

I personally cannot see a better deal than this at this point in time:

O2 Simplicity 12 Months @ £15/mth

300 Minutes
Unlimited Texts
Unlimited Data
Unlimited Wifi
Visual Voicemail

Cost of Phone: £599 - 3% Quidco (on price exl vat) (hopefully) = £583.71

Total Cost of Ownership over 12 months = £763.71


For those looking at 24 or even 18 month contracts, a good portion of you will be in the same situation in June next year when the next phone is released and you are trying to get out of, or upgrade your contracts.

If O2 do retract the unlimited data in October you will have grounds to end your contract and look at another sim free deal with any provider you choose.

The only downside I can see is if people have issues with the coverage which is understandable. I wouldn't call O2 amazing but they are satisfactory enough in London.

The other downside is the initial outlay may not be affordable for everyone, but judging by the recent Orange Payg phone price, you will not save more than £20-30 off of the Sim Free Phone price, which in my opinion is not worth it.

Does anyone have any better ideas?

 

[brightlights]

It's pointless trying to compare prices in detail, too complicated and you can make a persuasive argument either way depending what you factor in.

To me it seems that contract is better if you are happy to skip a generation of iPhones. If you want to upgrade every year, go for simplicity.

 

[iphone4]

Your comparison is not a fair one - you get six months extra phone usage in the second case. A fairer comparison would be

If i go with the 18 month simplicity it works out as:

£499 (16GB iPhone)
+£240 (18 months x £20)
=£859

If i go with 18 month contract it works out as:

£169 (working off orange prices)
+£720 (18 months x £40)
=£889

which is much closer.

If you are expecting to upgrade every year, I'd imagine the best deal would involve a 24 months contract + buying a PAYG after 12 months.

If i go with the 24 month simplicity it works out as:
£499 (PAYG phone initially)
+£480 (24 months x £20)
+£499 (PAYG phone after 12 months)
=£1478

If i go with 24 month contract + PAYG it works out as:
£119 (working off orange prices)
+£840 (24 months x £35)
+£499 (PAYG phone after 12 months)
=£1458

So 24 month contract is £30 cheaper over two years, or £724/year

 

[Nipz]

Good point a out the 24 month! Maybe worth doing.