With the recent move of o2 UK to sell almost all of their phones on pay as you go, is there a need to be tied in to long contracts anymore? Using the new Samsung Galaxy S as an example of a high end Android powered smartphone, let’s take a look.
1) The contract option:
The device is available for free on a 900 minute, unlimited text plan, with 750MB of 3g data and unlimited WiFi. £40 per month, for 24 months equates to a total cost of ownership of £1080.
2) The pay and go route:
Obviously there is an up front cost involved. Handset cost is£319.99, then the best value would be a sim only deal, that matches the contract allowances for £30 per month, this is a 12 month contract. Total cost of ownership for 2 years would be £1039.99.
So perhaps not as much difference as you were thinking. However there are still advantages of the pay and go option though, obviously a 12 month contract as opposed to 24, making upgrading easier. And cheaper monthly outlay providing the up front costs are manageable.
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