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Phone with Contract Vs. Sim Only Plan

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Senior Commentator

Phone with Contract Vs. Sim Only Plan

I was about to do a recontract & was looking into the plans available.,

 

with phone & contract  -  ( 80 * 24 )

only sim                      -  (  40 * 24 )

 

Extra amount for 24 mnths   ->   960 $    +  additional charges based on the phone we choose

Actual  Phone price              ->   400  to  600 $

 

What would be the use of getting a phone in contract, if the person has to pay almost  960$  extra  ?

I mean is there any other advantage of choosing a contract plan with phone ??

 

Am i missing anything here ?

3 REPLIES 3
Highlighted
Grand Guru

Re: Phone with Contract Vs. Sim Only Plan

There are some facts you may not be aware of.

 

For contract with Handsets, it required at least 12 months of the contract to be fulfil.

That is why the 1st 12 months of the contract cannot be Recontract.

Telco(s) will charge for the actual phone price in prorated if termination of contract is not completed 12 months.

 

From the 13rd months of contract, it allow the customer to do Early Recontract for a fee of $300.

That is to say you pay $300 as for the remaining months of the contract in order to recontract.

If the customer is using the higher plan such as 4G-5 plan, it do have much benefit to early recontract.

Basic calculation = $82.90 x 9 months = $746.10 - 300 = $446.10 savings, if Telco do not make any changes, such as higher Early Recontract fee on this plan.

As recontract without any fee, can be done from the 22nd month of the contract.

 

Handset cost:

 

For Samsung S7 on 4G-4 plan $62.90

Upfront cost = $99.00

1st 12 months = $99 x 12 = $754.80

Handset retail price = $948.00

Hence, the total for to cover the cost of handset based on 12 months.

Offset = $754.80 + $99.00 = $853.80

 

Do note that most Retail price are set by the Manufacturer.

When a "big" Retailer, such as Telco, they do able to have better rebates of between 40 to 60 % off the retail price, from the Manufacturer /Distributor.

 

As for the cost on outgoing calls is not so much as it seem.

 

This is just one part of what you want to know.

 

When a contract is signed, there are clause in mention on after contract, the charges could be the same or higher.

Any changes, as what you want, must be request from the customer.

Without customer request &or initiate, on changes, if not it would be continue as it is.

For example:

There are some customer who said that why when contract has ended, expired, why the Telco did not terminate it, as it felt being 'cheated'.

Basic understanding is that some, if not many, customers do want to continue as it is.

If the Telco then terminate on the end of contract, again, these customers would be furious as they "lost business sales".

 

As for your question on auto mode to change to another type of mobile plan, it will affect more issue.

That is to say, once the contract ended, and switch to SIM-only plan, the history would be lost.

This is similar to an example:

There are some customers who take up mobile plan with "Rebates" as discount.

But if this customer decided to sign a handset contract, there will not have any recontract voucher &or similar benefits in kind.

As the customer already enjoy some form of discount and so the contract is just like 'new' contract.

There is no way to go back as to recontract with certain benefit, in kind.

As it already enjoy the benefit on using "Rebates".

 

This is also another part of this equation.

More...

 

 

i am not starhub staff &or related to.

Highlighted
Senior Commentator

Re: Phone with Contract Vs. Sim Only Plan

@eric3743 ,

 

Thanks for explaining.

So do you say that unless you are recontracting or changing your mobile after 12 months, the user is on loss ?

 

Because I did not recontract / change mobile for the complete 2 years. And during the time of my contract sign, there was no sim-only plan. So I had no idea how much extra am paying just for this phone. But after this sim-only plan I have a clear idea, on how  much money I have wasted on this Smiley Sad

 

Yea I agree that it is not ethical to change the plan without customer concern. Also it is not ethical to not intimate the customer about the contract-end & the better cost -effective plans availble for the exact same service. 

4G-5 -  80$  { contract with phone } 

4G5  -  40$  { after contract end } { i was never intimated that the contract is over & I can switch to this }

 

And I have no idea , what history loss you are speaking about.

 

 

 

Highlighted
Grand Guru

Re: Phone with Contract Vs. Sim Only Plan

@SKR

 

Sorry if i did not meant clearly on history, which may be a bit misleading.

 

1.  Suppose your mobile contract is over &or completed 21 months of contract, you can request for recontract voucher, depend on certain criteria &or conditions.

This depend if you are not on others, point 2.

 

2.  But if you sign up to SIM-only plan &or Rebates, this means that you have change your status to non contract terms, with Discount.

As both SIM-only & Rebates plans (if it still exist) do not have any contract.

So if you decide to sign-up contract with handset when you are on SIM-only plan, you may not have any recontract voucher, as you have enjoy the discount rates, which is SIM-only &or Rebates plans.

 

3.1. But for Recontract voucher, if you visit the Starhub & exclusive partner shops.

Starhub & Exclusive partners handsets are based on what stated on the Starhub brochure.

If the handset that you want and the handset do have "promotion" discount, then the Recontract voucher is not applicable.

That is either you use the Recontract voucher or Promotion as stated.

This means that Recontract voucher is an promotion discount.

For any discount, only 1 is applicable.

 

3.2.  Online store is based on the what is stated on the online store website.

For online store, if there is a promotion discount, then the final retail price do include the promotion discount.

So Recontract voucher is acceptable.

Online store is a different entity by itself, as it do not use the handsets pricing on the Starhub brochuer, only what is stated on the Online store website.

 

Hope this help you to understand, as this is what i know so far for many years, and should they make some changes, i won't know.

 

Since you have already paying normal subscription rates, no discount, maybe you could request for a recontract voucher.

 

 

i am not starhub staff &or related to.