I chose not to post this news specifically today as I wanted to share my views and thoughts with you all about the nee scheme being offered by UK Operator O2.
Lets start with the facts surrounding the offer firstly:
- 12 Month Contract
- £55 a Month
- 750 Minutes
- Unlimited Text Messages
- 500 MB of Data
- Mobile Phone Insurance
Here’s how the lease scheme works:
- Customers can walk into an O2 retail store or existing O2 customers can call over the phone and lease a new 16GB smartphone with no upfront payment AND a 12 month contract at only £55 per month including insurance and 500 MB of data.
- The customer does not own the phone they simply lease it from O2 every year and at the end of their contract they can return the phone to O2 and take a new one with a new lease, or if they’d prefer, move to another O2 contract or move on.
- O2 includes insurance as part of the monthly payments, so customers are protected if they damage or lose the leased device.
Thanks to Android UK News Etc for the above information.
Some more facts then?
- An 18 month O2 Contract for £52 will give you 500mb of data, 1,200 minutes of call and Unlimited Texts with 37 handsets available (Galaxy Nexus £59.99)
- A 24 month O2 Contract for £57 will give you 500mb of data, unlimited calls and unlimited text messages with 21 handsets available (Galaxy Nexus Free)
When I first looked at this offer I thought it was shockingly bad and very overpriced however when you look at the facts which are shown above it’s hard not to see how beneficial this deal is to those that can afford a £55 a month contract.
18 month ago the HTC Desire was considered the number one handset the same way the Galaxy nexus is now, so lets consider you trade in the Desire at the end of your 18 month contract which you have already paid £312 more for if you were paying £52 a month for. You would be looking at getting around £70 to £80 for that handset now so talking that away from your overpayment you would still have paid £232 more than you would under this deal.
Now for the downside, you do not own this handset. You are unable to or even permitted to Root the handset as it invalidates a warranty that you don’t actually own.
For many this aint such a big thing but for the hardcore Android user that would be seeking handsets like the Galaxy Nexus and being willing to pay £57 a month on a 24 month contract to get it this is a must, hell what good is your phone these days if you cant root it right?
All in all the deal itself is fab however you need to look at the downside and consider it very carefully too.
I, just like Chris over and Android UK News, suspect this is a deal set to fail from the offset however we could well be proven wrong and if we are then the above will hopefully help you when looking at this deal.