O2 Refresh

[Moccasin]

The UK network O2 yesterday announced a new concept for mobile phone contracts. Essentially, the two parts of the contract fee for phone and calls/data etc are separated and it becomes a half-way house between a standard contract and simplicity. Its a 24 month contract but the phone update is separated from the contract so you can avoid an early termination fee if you want to change your phone or can reduce your monthly costs if you keep your phone past the 2 years.

You can choose how much you pay up-front and what minutes/data you want and then can update your hardware after paying off your phone before the 24 months are up. Its a 0% APR loan on your phone essentially.

I can see myself using this for updating to the 5S as its more attractive (at face value) than buying sim-free

Anyway, here's the link http://news.o2.co.uk/?press-release...rs-to-get-the-latest-phone-whenever-they-want

 

[macgrl]

Interesting thanks for that.

I will wait to see what the costs are etc when they launch on the 16th.

Is this similar to what T-mobile are doing in the US?

 

[Satori]

The UK network O2 yesterday announced a new concept for mobile phone contracts. Essentially, the two parts of the contract fee for phone and calls/data etc are separated and it becomes a half-way house between a standard contract and simplicity. Its a 24 month contract but the phone update is separated from the contract so you can avoid an early termination fee if you want to change your phone or can reduce your monthly costs if you keep your phone past the 2 years.

You can choose how much you pay up-front and what minutes/data you want and then can update your hardware after paying off your phone before the 24 months are up. Its a 0% APR loan on your phone essentially.

I can see myself using this for updating to the 5S as its more attractive (at face value) than buying sim-free

Anyway, here's the link http://news.o2.co.uk/?press-release...rs-to-get-the-latest-phone-whenever-they-want

This seems a bit like buying the handset on credit. So the question will be is it cheaper to buy sim free on a credit card (and pay off monthly) or to go through O2. We'll see when the 5S comes out, but I suspect there won't be a great difference between the two.

 

[macgrl]

I thought the same thing..I wonder how much the total cost of the phone is via o2 refresh v buying outright from apple etc. If it is the same then it is like and interest free deal. I would think there would be a price difference though but it will be interesting to see.

Especially if you can get an interest free credit card. For people that don't want / have credit cards etc it may be a good option.. the devil is in the detail...

 

[Moccasin]

I thought the same thing..I wonder how much the total cost of the phone is via o2 refresh v buying outright from apple etc. If it is the same then it is like and interest free deal. I would think there would be a price difference though but it will be interesting to see.

It does say in the T&Cs that its 0% APR so unless there is some sort of set-up fee, then it sounds like it will be the same cost as buying outright. I think the tariffs are a little lower than Simplicity too - about £4pm (£17 for unlimited calls/txts/1GB vs £21 on Simplicity).

Certainly it allows those who can't muster the funds to buy up front. On reflection, I may well still buy direct from Apple, depending on how easy it is to get the new phone on release.

 

[macgrl]

It may be 0% and so you don't pay interest but is the overall cost of the handset the same as if you buy one outright from o2 or apple? I mean will the overall cost on o2 refresh be £529 for a 16gb.

If it is then with the cheaper tariffs it may not be too bad a deal.

 

[Moccasin]

It may be 0% and so you don't pay interest but is the overall cost of the handset the same as if you buy one outright from o2 or apple? I mean will the overall cost on o2 refresh be £529 for a 16gb.

If it is then with the cheaper tariffs it may not be too bad a deal.

I doubt that they'd offer 0% APR and increase the cost you're paying back. Would be far easier to market it at the same cost but at 15% APR or whatever. Unless the interest is more than £100, the deal seems cheaper in any case, as £4pm over 24 months is £96 saving over outright+Simplicity over 2 years.

The benefit to them is that they still lock you into a 2 year network contract, rather than 12 months for Simplicity.

 

[abz1981]

so is this not similar to t-mobile usa offerings?

 

[macgrl]

so is this not similar to t-mobile usa offerings?

pretty much

 

[macgrl]

Will be intersting to see how many other networks do the same over here. Are there any other us networks other than t-mobile that do it

 

[tigertazz]

It may be 0% and so you don't pay interest but is the overall cost of the handset the same as if you buy one outright from o2 or apple? I mean will the overall cost on o2 refresh be £529 for a 16gb.

If it is then with the cheaper tariffs it may not be too bad a deal.

just been on the 02 website http://www.o2.co.uk/refresh/hows-it-different#tabs and from what i've read it is 0% intrest on all phones so is much cheapers to get from O2 than on a CC.
I like this idea as Apple's release schedule doesn't mean as much now as i can change my phone when i want for less cost (not paying off the expensive voice plan as well) and i get the benefit of having a contract tariff. Now they just need to annouce their LTE plans!

 

[macgrl]

Yes but depending on how much you pay upfront for the phone you may end up paying more than a sim free phone. If you want to pay a load up front it is actually cheaper than a sim free phone.

You will pay more than the cost of the phone outright if you pay less upfront..which is fair enough. o2 are stating the phone cash price as £600

So while it is 0% interest it may be cheaper to buy the phone outright..no interest but they are charging you more if you want to pay less upfront

 

[tigertazz]

Yes but depending on how much you pay upfront for the phone you may end up paying more than a sim free phone. If you want to pay a load up front it is actually cheaper than a sim free phone.

You will pay more than the cost of the phone outright if you pay less upfront..which is fair enough. o2 are stating the phone cash price as £600

So while it is 0% interest it may be cheaper to buy the phone outright..no interest but they are charging you more if you want to pay less upfront

I don't think that they are charging more for the phones they give the example of

Can you give an example of how O2 Refresh will work in real life?
Imagine John buys his new smartphone on O2 Refresh. He signs two contracts. One is for his Phone Plan: £20 a month for 24 months, with no upfront payment. The other is his Airtime Plan for calls, texts and data: £22 a month, for unlimited minutes to UK numbers, unlimited text messages to UK numbers and 2GB of data. So every month John pays a total of £42.

After ten months, John wants to get his hands on the latest new phone. All he has to do is pay off the balance of the Phone Plan (not the future months of the Airtime Plan): 14 months x £20 = £280. And if he recycles his old phone through O2 Recycle, he can get money back to pay it off or put towards his new phone.

He then buys a new phone on O2 Refresh, chooses his new Phone Plan and starts using his new phone with a new Airtime Plan.

If John keeps the same phone after he's fully paid off the Phone Plan, the price he pays each month will reduce to include only the price of his Airtime Plan and any services he uses.

Representative example: Duration of agreement 24 months. Phone cash price is £480. Upfront cost is £0. Credit amount is £480. Interest rate is 0% fixed. Representative APR is 0%. Monthly phone payment is £20. Total amount payable for phone is £480. The monthly airtime payment is £22.

O2 Refresh includes 24 month Airtime Plan on our Pay Monthly Mobile Agreement and options to pay for your phone upfront or on a consumer credit agreement. To get a new phone pay the balance if you've taken credit and we waive the remaining months of the Airtime Plan. Subject to status, credit check, and payment by Direct Debit. Applicants 18+. Subject to availability. Airtime Plan prices may go up. Standard UK calls and texts, special numbers chargeable. UK data only. Credit provided by Telefónica UK Limited trading as 'O2', 260 Bath Road, Slough, Berks SL1 4DX. Telefónica UK Limited is regulated by the OFT, consumer credit licence number 0518589. Terms and fair use policy apply, visit o2.co.uk
I think that you're paying the same price for the phone as you would on PAy as you go but you get the benefits of a contract. Thats how i read it anyway.

 

[macgrl]

It is a bit confusing I guess it depends on your own circumstances as to whether it is good value or not

 

[macca1980]

Maybe I am missing something but a Galaxy S4 would cost £47 a month on o2 refresh , but only £33 a month from 3 (with unlimited data not 4gb)
I don't want to pay an extra £14 a month just in the chance I may want to upgrade early.

Someone please explain why you would pay so much more per month?

 

[Grayburn]

Maybe I am missing something but a Galaxy S4 would cost £47 a month on o2 refresh , but only £33 a month from 3 (with unlimited data not 4gb)
I don't want to pay an extra £14 a month just in the chance I may want to upgrade early.

Someone please explain why you would pay so much more per month?

I'd pay more because i know i'm going to get good signal on O2. Three are useless where i work (City Of London) and useless where i live (Essex). I couldn't give a monkeys about AYCE data as 1GB does me a month.

I have contracts with both Networks and i wont be renewing the contract with Three when it's nearly finished.

Three might be cheap but the network can get very congested due to a lack of masts transmitting signal. Where i work there is blanket coverage by all the networks except Three. Their masts are well outnumbered.