The Changing Face of Mobile Contracts

It used to be the case that mobile phone contracts lasted 12 months but these days most providers are keen to get you signed up for 18 or 24 months. This makes choosing the right handset and network very important as it can be a big commitment. When selecting a mobile phone we are aware that it's style or function may start to become outdated towards the end of our contract. The benefits of longer contracts for the provider are straightforward: they get more money from you and can rely on your custom for longer. There are also benefits for the consumer which are clear if you compare your first mobile phone to your current model.



The technology available now means that our phone can be used to take (surprisingly high quality) photographs, browse the internet and watch television online. We also have inbuilt GPS and video calling functionality. The handsets we use are worth a lot more than they used to be yet most contracts don't require a fee upfront for the phone. Despite all the increases in handset quality most of us still get a free handset as long as we sign a contract of 12 months or longer. It is also worth pointing out that the amount of minutes and text messages we are allocated tends to increase each year whilst the cost of calls tends to fall. My current contract allows to unlimited text messages and calls to those on the same network.

There are of course cheaper options for those who are unwilling to pay a monthly fee. Pay as you go phones are still popular particularly with those wanting to spend less per month. Pay as you go users are not obliged to sign up for a particular length of time so they can jump ship whenever they want. Pay monthly SIM only deals are also available for those who also have a handset they are willing to stick with but who want a better price for calls.

What ever contract you choose you cannot argue that there isn't enough choice. Now, more than ever before we are able to decide what we want and how much we are willing to pay for it.

Pay As You Go Mobile Broadband Overtakes Fixed Cost

October sales figures have shown that for the first time pay as you go mobile broadband contracts have become more popular than fixed price contacts. According to Broadband-Expert.co.uk 53% of new customers in October chose the pre paid option. This is the first time pay as you go has overtaken fixed usage contracts.

Pay as you go mobile broadband has been increasing in popularity over recent years particularly with infrequent internet users. The ability to only pay for usage rather than fixed monthly fee means that the contracts, like those of pay as you go phones, tend to work out cheaper. They also offer an alternative to the 12-24 month contracts often necessary for prepaid mobile broadband.

Recent years have seen an increase in 'light users' who only go on line occasionally to check their email or use Ebay etc. For these people a fixed line broadband connection is an unnecessary expense and mobile broadband a suitable alternative. Pay as go go offers the most competitive deals and has seen its popularity rise during the recession.

Spotify Helps to 'Curb Music Piracy'

A recent survey has shown that those who use Spotify to stream songs for free are less inclined to illegally download music. Of those questioned who admitted to illegally downloading two thirds said that using Spotify had encouraged them to reduce the amount they downloaded.



This makes you wonder if people want to own music or just want access to it? Now that it is possible to download almost any album for free has owning a collection lost its appeal? CD sales continue to fall whilst legal downloads become more and more popular. It will be interesting to see if the popularity of music streaming will have a negative effect on legal mp3 sales.

Whilst users with a free Spotify account cannot own or stream songs offline they can have round the clock access. Those with a premium account can stream offline and on mobile devices such as the iPhone or the HTC Hero for £10 a month. So far the mobile app is only available with a monthly contract rather than on pay as you go phones so bandwidth limits are not an issue.



Legal downloads continue to rise in popularity with Amazon's mp3 store being a positive example. It has become the second most popular provider of mp3s behind iTunes perhaps due to its household name and lack of DRM crippled files. As CD retailers close their doors it is clear that the music industry needs to change its model. Spotify may well be leading the change.

Mobile Broadband is Mostly Being Used at Home as an Alternative to a Fixed Line

Mobile broadband used to be mostly sold as a portable way to access the internet. Before the Blackberry became popular having a pay as you go mobile broadband dongle meant that you could check your emails when you were out of the office or on a train. Business men and women where the core market and you certainly didn't get a free laptop.

Recent research by Virgin Media has shown that 78% of their mobile broadband customers predominantly use their dongles at home. This shows how the mobile broadband market has changed; these days it is often seen as a cheaper and easier alternative to having a phone line. Why pay to have a phone line installed and then pay a monthly fee if you have an inclusive mobile phone contract? Why buy a laptop when you can get one for free with mobile broadband?

There are of course reasons why some people stick with fixed line broadband (lets not get into that debate now). People who rent or don't have much of a disposable income are increasingly choosing the mobile option. The fact that they aren't being as mobile with their laptop doesn't surprise me, particularly with the rise in Smart Phones that have a decent 3g connection.

Students Boost Pay As You Go Mobile Broadband Sales

Pay as you go mobile broadband is perfect for students. Having a fixed line connection in rented accommodation is expensive and can be a pain to organize so mobile broadband is an obvious choice. A pay-as-you-go contract means not having to pay for anything other than what you use, no point paying for mobile broadband during the summer if your parents have a traditional fixed line broadband connection after all.



Tesco's Telecoms division has just reported that they have seen a 71% increase in takeup for their flexible pay as you go mobile broadband which coinsided with the begining of the University year. Tesco sells mobile broadband contracts with a selection of providers including Orange and O2 including pay as you go and pay monthly contracts.

Three Offers One Month Mobile Broadband Contract

The Mobile Broadband industry is a very competitive one. Each year the big broadband providers try to bring out better deals in order to convince new consumers to sign up with them. Some offer free laptops others generous download limits. Three has decided to offer a new one month only contract aimed at those who don't want to get tied in to 18 months worth of monthly charges.

Their pay as you go mobile broadband offerings now include a month-by-month contract with a 5gb download allowance. Their 'dongle' (don't you just hate that word?) costs £20 on this contract taking the first monthly cost to £35. Users can cancel at any time and will only be required to pay for the remainder of the month. In contrast those canceling most 12+ month contracts are obliged to pay the remainder of their monthly costs making it effectively impossible to cancel most mobile broadband contracts.

This deal is likely to appeal to those needing mobile broadband in the short term. Students who spend part of the year at home will be able to use mobile broadband whilst at university without having to pay for it year-round. The downside to this plan is that you would receive a considerably smaller download allowance than with a long term contract.