Are you paying for handsets you already own?

Posted On 05th September, 2019

By Ria White
Are you paying for handsets you already own?

Are you paying for mobile handsets you already own?

With consumers becoming increasingly savvy about deals for their mobile phones, one of our key missions at easyNetworks is to transfer that same thinking and awareness into the business world.

A recent example is when the media discovered that customers of big mobile phone companies were paying for handsets they had already paid for.  Are you overpaying for your handsets?  Here are a few tips to help you take control over your business mobiles costs.

A Traditional Mobile Contract…

The monthly tariff for a traditional contract is made up of two cost elements:

  • Airtime with an allowance for data, texts and calls.
  • The Handset spread over the length of the contract.

EXAMPLE: A tariff of £40 per month would roughly translate to £15 airtime and £25 for the handset. If you multiply £25 by 24 months, the approximate allowance for two years is £550 and that is enough money to pay for most handset models.

So What’s Wrong?

  • No Flexibility– once you sign, you’re locked in, even if your business needs change.
  • Renewal – If you don’t renew or renegotiate at the end of a contract (perhaps more urgent business matters have taken priority), you will continue to pay for handsets you’ve already paid for during the contract term.
  • Contract End Dates – Trying to align ‘CEDs’, for all mobile phones withing a company often involves paying penalties to exit early for some users, or allowing the waste of money from the other users to ‘catch up’.

How About ‘SIM Only’?

SIM only can offer great value if you have the funds to purchase your devices. You then have total freedom over what and where you purchase. You can replace handsets (maybe with refurbished ones) and scale down users at any time.

If you don’t want to spend the capital, it is also worth considering leasing your handsets.  The combined price of a lease and a SIM only tariff often works out cheaper than a traditional contract.

By separating it from airtime, once your handset is paid for, that’s it! No room for over-payments and unnecessary charges.

 To discuss your company’s use and payment for its mobile phones, call 0800 1313 100 or email hello@easynetworks.co.uk.

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