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iPhone Insurance: Mobile Phone Payment Options
Tuesday, May 26, 2009
The mobile phone market has become split into three main customer groups, contract mobile phone customers, pay as you go customers, and most recently pay monthly sim only contract phone customers.
The first sector are the foundation for mobile phone networks, contract mobile phone customers. Until the last few years, mobiles were usually sold on 12 month contracts, with the advantage for customers being that they got a free handset when taking out a contract. Popular since the 1990s, the 12 month contract is still a common choice today, although 18 month and two year contract options are gaining popularity all the time. The reasons for this are primarily twofold, firstly mobile phones seem to last longer these days, particularly in terms of battery lifetime. It used to be true that by the end of your 12 month contract, your phone might not even hold its charge for 24 hours, or in some cases you might have needed to buy a replacement battery before your minimum term contract finished! The second reason for the growth of the 18 month and two year contracts is the free gifts. By committing to a longer term deal, you can expect to receive a free laptop or games console on some contracts, on top of your free minutes and text allowance. Even if you don’t go for a free gift option, you will normally find the minutes and texts inclusive with your handset are much more generous compared to the monthly price of a shorter annual option.
Free sim card deals are available on the main mobile networks.
The 2nd user group is the other end of the spectrum – no contract and call time and messages are paid for ad hoc, usually in denominations of five pounds, ten pounds or £20. The obvious target customer for this model is children – unable to apply for credit and therefore unable to access the contract mobile phones unless a parent signs up for them. However, the over 18′s account for the majority of the pay as you talk market – highlighting the appeal of the pay as you talk offering against the cheaper talk and text contract.
Finally, the most recent arrival to the marketplace is the Sim only deal – a contract which usually lasts a minimum of 30 days, and then renews month to month. It is mainly targetted at the sector of the market with existing phones that arent bothered about getting the latest and greatest handset, instead looking for the most cost effective service. This marks a clear change in the marketplace to great value in service provision, whereas a lot of advertising spend has previously been targetted at the latest handsets and the most advanced funcationality.
Check out the latest sim-only deals on the market.
