Navigating Phone Contracts: Is a Smartphone Bundle the Way to Go? A Deep Dive into the Pros and Cons
Smartphone agreement: Expensive luxury or excellent bargain?
Many phone providers try to lure us with bundles that include a new smartphone and a plan, promising a great deal. But is it really worth the splurge? Let's dive in to find out.
Before making the decision, you should consider the true cost of these bundles. You'd be surprised to see that buying a plan without a smartphone separately and purchasing the device at the best market price could save you some serious cash.
Consumer advice forum, "Finanztip," suggests an ideal benchmark for calculating: Effective monthly contract costs without a smartphone above $9 (€9) per month might be too expensive, according to their assessment. Standard all-net flat-rate plans without a smartphone usually cost between $5 and $9 per month, providing a data volume that caters to most users, ranging from 1 GB (suitable for light usage) to 35 GB (perfect for heavy users).
The Three-Step Approach
The computation involves three simple steps:
- Calculate the average monthly cost of the combo offer: Multiply the monthly base fee by 24 (minimum contract term in months), add all costs such as one-time payments, setup fees, or shipping, subtract all discounts such as a switch bonus, and then divide the sum by 24. You can locate the average monthly price on comparison portals like "Check24.de", "Teltarif.de", or "Verivox.de."
- Research the cheapest market price of the smartphone, using price comparison websites like "Geizhals.de", "Günstiger.de", or "Idealo.de". Then, divide the price of the smartphone (including shipping) by 24.
- Subtract the calculated smartphone value (derived in step 2) from the average monthly price (derived in step 1).
Assessing the Offer with Some Math
The result obtained (in step 3) represents the effective monthly price of the contract without a smartphone. According to "Finanztip," evaluate this result as follows:
- If the result exceeds $9, it usually makes sense to separate your phone and plan.
- A result between $5 and $9 is a fair deal.
- A result under $5 is a great deal.
- A result of $0 or less means you're practically getting the contract for free.
- A negative result indicates the smartphone is actually cheaper over the contract term than purchasing it separately, but this scenario is quite rare.
Don't Forget to Break Free at the End of Your Contract
"Finanztip" advises that good combo deals are suitable if you need a new phone. However, you should not forget to cancel the contract after the two-year minimum contract term and switch to a cheaper provider. Otherwise, you might end up paying more.
To have a transparent understanding of your costs, compare the monthly prices of the new contract and your current one, take into account any promotional discounts, and assess the necessity of the new device. Factor in elements like data allowance, network quality, coverage, contract flexibility, customer support, and promotions for a fair evaluation.
- Smartphones
- Consumers
- Tests
- Carriers
- Comparison Sites
- Cancellation Policies
- Network Quality
- Promotions
[1] T-Mobile. (n.d.). T-Mobile Magenta Unlimited Plus Plan. T-Mobile. https://www.t-mobile.com/offer/unlimited-plus.html
[2] Verizon. (n.d.). Verizon Start Unlimited Plan. Verizon Wireless. https://www.verizonwireless.com/plans/start-unlimited/
[3] AT&T. (n.d.). AT&T Unlimited Elite Plan. AT&T. https://www.att.com/shop/wireless/plans/unlimited-elite.html
[4] Mint Mobile. (n.d.). Mint Mobile Senior Discount. Mint Mobile. https://mintmobile.com/senior/
[5] Mint Mobile. (n.d.). Mint Mobile Plans. Mint Mobile. https://mintmobile.com/plans/
- In the process of calculating the true cost of smartphone bundles, it's essential to research the cheapest market price of the smartphone using comparison websites like Geizhals.de, Günstiger.de, or Idealo.de.
- When assessing the offer with some math, if the result (obtained from three simple steps) exceeds $9, it typically makes sense to separate your phone and plan. On the other hand, a result under $5 is a great deal.
- Consumers mustn't forget to review cancellation policies and network quality while considering a switch to a cheaper provider at the end of their contract term, as failure to do so may result in paying more.
