Is a mobile phone contract featuring a smartphone more pricey or an exceptional offer?
Mobile Deals: To Buy or Not to Buy a Phone with Your Plan
Let's cut the crap — people often wonder if they should sign up for a mobile contract bundled with a smartphone or go separate ways. It's a simple math game, but let's make it easy peasy.
Berlin — Mobile providers love showcasing contract deals as bargains, but beware! Don't fall for these tricks.
Before you dive into a bundle deal, crunch the numbers to see if you'd save more by opting for a contract sans a smartphone and buying the device separately at the best price on the market.
Don't shell out more than €9 per month for a standalone plan
Consumer advisory service "Finanztip" suggests a benchmark figure: Effective monthly contract costs without a phone should not exceed €9, according to their experts.
It all boils down to the cost of affordable, no-frills plans offered by numerous consumer advisors, which range from €5 to €9 a month and provide a decent data allowance of at least 1GB for occasional use to 35GB for heavy users.
Break it down in three steps
The calculation process is straightforward:
- Compute the average monthly cost of the combined deal by calculating:
- Multiply the monthly basic fee by 24 (the minimum contract term in months),
- Add any costs like setup fees, shipping, and one-time payments,
- Subtract discounts such as switching bonuses,
- Divide the total by 24. Handy comparison sites like "Check24.de," "Teltarif.de," or "Verivox.de" can help by displaying the average monthly price directly.
- Hunt down the cheapest phone price online via price comparison websites like "Geizhals.de," "Günstiger.de," or "Idealo.de" and divide the cost (including shipping) by 24.
- Subtract the smartphone's calculated value from the average monthly cost of the bundle deal.
Evaluate the effective cost of the contract minus the phone
The outcome tells you the monthly effective cost of the plan without a phone. Here's what "Finanztip" advises:
- If the result is more than €9, it's usually advantageous to go the separate route.
- A result between €5 and €9 is fair.
- A result under €5 is a great deal.
- A result of zero or less means you're effectively getting the plan for free.
- A negative result implies the phone is cheaper over the contract period compared to buying it separately — although this is rare.
Remember to drop the contract after the contract period
According to "Finanztip," bundle deals are worth it if you need a new phone, but don't forget to cancel the contract after the 24-month minimum term and switch to a cheaper provider to avoid shelling out more unnecessarily.
Now you're all set to make a smart call! If you find this advice useful, we suggest you check out more insights from "Finanztip" to help you make the most of your purchases!
- Based on the advice from consumer advisory service Finanztip, the effective monthly cost of a mobile contract without a phone should not exceed €9.
- To decide whether to purchase a phone with your plan or not, calculate the value of the phone by dividing its cost (including shipping) by 24, then compare it with the average monthly cost of the bundle deal.
- If the month-to-month effective cost of the plan without the phone exceeds €9, it's usually better to go with a separate plan and buy the device at the best market price.
