Have You Ever Thought About Why Mobile Phone Agreements Have Raised From 12 Months Long, Right Up To Two Years?

Heading back to 2004, if you took out a phone contract, you could just about guarantee it would be for a 12 month period of time. You would most probably have been provided with a free mobile phone by your local phone retailer and also have been given a bundle of inclusive minutes along with a pre determined text message allowance. When you got in to the 11th month of the agreement, the network provider would have contacted you and offered you another free mobile phone in an attempt to get you to sign up for another 12 month agreement.

As 2006 approached, many retailers and network companies started to replace the 12 month agreement with the longer 18 month term contract, which meant that the consumer would have to keep their phone for about 6 months longer compared to previous years. There are two big winners from the longer 18 month term phone agreement, and you can be certain that the customer is not one of them.

As you can imagine, the biggest winner in the longer term contract length would be the phone network provider, as in theory, they have now cut down their costs related to providing customers with free mobile phones by around one third. Another silent winner was also the mobile phone insurance companies, as more buyers decided to take out mobile phone insurance to protect their phones, as they understood that there was a longer period where it could get lost or thieved, with no option of another free mobile phone until the end of the 18 month contract.

Within a year of the new longer phone agreements, the network providers altered the rules again by increasing agreement terms by another 6 months to a long 24 month period. Yet again the mobile phone network providers reduced their charges as they only supply you with a free mobile phone every two years, their savings must run in to the millions every year. With the networks saving cash, the consumer is left to take the gamble of protecting their mobile phone with mobile phone insurance, or opting to take the chance of it lasting two complete years and not get lost, stolen or harmed over the 24 month period.

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