If you take out a mobile phone with a contract, it usually runs for 24 months. And then? O₂ is the only one to remove a cost trap that few really have on their radar. We show what it’s all about.
Goodbye cost trap with O₂? Let’s take a look at the three major network operators: At O₂, an iPhone 12 with the Free-M contract costs 59.99 euros per month. At Vodafone 79.99 euros in the RED M, at Telekom 79.95 in the MagentaMobil M – one-off payments, differences, possible advantages and bonuses are ignored. With all three you sign the contract for 24 months. And for all three, the monthly basic fee is significantly higher than for the tariff itself. For example, the o2 Free M costs 29.99 euros without a mobile phone.
Why this redundant explanation? The 30 Euro difference can be explained logically. Since the cell phone is significantly cheaper than without a contract (€ 1 with O₂, € 899 without a contract with Apple), you pay it off with the increased basic fee and thus spread the costs over a long period of time. In the example calculation with 30 euros per month. So far, so well known.
TAG NIX”: O2 ELIMINATES THIS COST TRAP
If you want to keep your mobile phone for longer than the 24 month minimum contract term – which is also much more sustainable – you do not cancel your contract. You don’t want to be stressed. As a rule, however, the contract costs then remain the same. The bottom line is that you continue to pay for the contract and mobile phone, even though the smartphone has actually been paid off during the 24 months.
O₂ is now eliminating this cost trap. If you do not cancel a contract with a mobile phone, you will pay the basic fee of the underlying tariff from the 25th month, i.e. from the third year of the contract – and no surcharge for a smartphone that has long been yours. O₂ calls the principle “Tag NiX” and means the day on which you pay an installment for your smartphone for the last time.
In the comparison described above, you pay 59.99 euros for the O₂ Free M for 24 months. From the 25th month, the iPhone 12 is paid off and the basic fee is now only the regular 29.99 euros. This new O₂ regulation is unique to date and makes smartphone contracts more attractive and sustainable in the long term.
FINALLY AN ADVANTAGE FOR EXISTING CUSTOMERS
The principle of continuing to pay after 24 months or in the event of “forgotten” termination has so far been a lucrative business, especially for mobile phone providers, which ensures low prices in a mixed calculation, especially for discount providers. Often with a rude awakening after two years. As a network operator, O₂ is now taking a due and honest step.
Every now and then there is also a cost cushion from other, small and large providers. But it seldom goes back to the actual original price. In the case of SIM-only tariffs, for example, we see that a contract is radically reduced in the first two years and then does not fall back completely to the original price without cancellation, but is still significantly more expensive. The discount is then a classic benefit for new customers. The new way of O₂ without cost trap, however, is a real advantage for existing customers.
O₂ put the new principle into a story in a commercial and poked fun at it based on a 25-year-old mobile phone contract:
