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Why pay more for billpay contract?

  • 01-04-2016 1:50pm
    #1
    corblimey
    Registered Users, Registered Users 2 Posts: 4,475 ✭✭✭


    Just getting back into the sticky waters of owning my own phone (been using a work supplied one for the last 4 years) and I'm confused by something. Take a Samsung S7 on Vodafone, for example.

    If I spend e35pm, I get the phone for e349, but if I spend e40pm, I can get it for e299. Great, save e50 up front, but spend 5*24=120 more over the course of the 2 year contract. What am I missing?

    ETA: Oopsie, of course the e40 plan has better options, never even considered that. Question below is still relevant though.

    Also, if I spend e35pm, I get 1 gig of data, but if I do pre-pay at e20pm, I get 5 gigs. Texts and calls are comparable (and of less concern to me). Over the 24 month contract, these 2 options actually work out to cost the exact same. So again, is it down to not wanting to spend e349 up front (or e709) for pre-pay?

    The only thing I can think of wrt billpay vs pre-pay is that when the billpay contract ends, I'll get a nice upgrade offer, but I don't know if 2 years of pre-pay wouldn't give me the same offers?


Comments

  • #2
    ED E
    Registered Users, Registered Users 2 Posts: 36,170 ✭✭✭✭ED E


    Contract subsidies exist because people *in general* dont budget and save for a new handset. If you ask many people to fork over €550-700 for a high tier phone they'll be aghast but are happy to pay €55/mo for the next 24 months.

    I've been on the 3 AYCE deal for 3+ years now (IIRC), for that I get everything I need + Google Music + Games currency. Saving up €425 for the handset is no big deal, saved a fortune over my last few handsets.


  • #3
    corblimey
    Registered Users, Registered Users 2 Posts: 4,475 ✭✭✭corblimey


    Thanks ED E, that's my feeling too. I can afford the PAYG handset now and VF's PAYG deal is better for me than a BillPay at twice the price. The only thing I can't get a straight answer on is when it comes time to upgrade, am I better off on Billpay or is it much of a muchness? Have you upgraded in the last 3 years?


  • #4
    ED E
    Registered Users, Registered Users 2 Posts: 36,170 ✭✭✭✭ED E


    Upgrade deals used to be a thing, telcos would offer a nice discount to keep you, now they're dud. Often the new customer deal is better than the upgrade deal.

    I upgrade every ~18 months. My Find7 is now that age so I'm looking at a replacement, but my first choice isnt available just yet. Previously I had a Sony XS which I paid €440(IIRC) for which was followed by a prize of a GS3.

    Its worth noting too that when your marketplace is Amazon.de and not your local carphone warehouse you have a lot more choice.


  • #5
    corblimey
    Registered Users, Registered Users 2 Posts: 4,475 ✭✭✭corblimey


    Yeah, I took a look online this morning (although not specifically on amazon.de) to see about getting a handset so I could go sim-only, but the price isn't that much different for the handset I'm interested in (the inevitable s7) and for that price, I tend to buy local in case there are problems. I'm surprised by your statement about upgrading, I asked in CPW this morning "what would I happen if I walked in today with a 2 year old S6, and wanted to upgrade to an S7?", the guy told me if it was mint, it'd be worth about e240. Come to think of it though, it should be worth that no matter if I'm on billpay or pre-pay - for me, it's just a question of whether that e240 would go towards another full-priced handset on pre-pay or something cheaper on billpay.


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