Eight ways to get your next mobile contract for less

We show you how to get the phone contract you need at the lowest possible price.

I’ve just taken out a new mobile phone contract. After much research and haggling, I ended up sticking with my existing provider (Orange) and now pay not very much for an HTC Desire, lots of free minutes and texts, and a huge wodge of free internet usage. Hoorah!

However, going through the whole process, I came across all sorts of financial pitfalls and potholes, designed to make me pay way over the odds.

Here are eight top tips on the how to get the phone contract you need at the lowest possible price.

1. Shop around

When looking for a cheap mobile contract, the single most important thing to do is shop around. Have a thorough search through current deals using specialist comparison sites like Omio, Recombu, Mobiles.co.uk and Bill Monitor.

It’s definitely worth using more than one site, because the packages offered are likely to differ. And don’t fall into the trap of signing up for a new contract in a high street shop: The same contract will usually be available for much less online.

2. Don’t forget Giffgaff

Of course, contracts aren’t the only way to go. It’s also a good idea to check out Giffgaff - a SIM-only, pay as you go mobile provider with a difference.

The Giffgaff community has a big hand in running the operation, dealing with technical support issues and contributing ideas for the design of new tariffs and bundles. These supporters are then given reward points, which help bring down the cost of their own Giffgaff bills.

There’s plenty of good feedback about Giffgaff in tech reviews and online forums, with many people finding it more competitive than any of the other, conventional mobile providers.

And it runs on the O2 network, so it benefits from an established underlying infrastructure and good network reception.

You can find out whether your preferred network offers good coverage in your area on this page of regulator Ofcom’s website.

3. Then haggle with your existing provider!

It’s often less practical hassle to stick with your existing provider - but only do this if it also makes financial sense. So, once you’ve found the best deal on the market, call your provider and ask them to match it.

Don’t be put off if the first person you speak to says it can’t be done. If you politely stick to your guns, you’ll probably be put through to a second, ‘customer retention’ staff member who has much more leeway to give you a better deal.

4. Stranger danger

Shortly before your existing contract is up for renewal, you’re likely to be contacted by salespeople encouraging you to choose a new package, and usually offering you a free handset upgrades as part of it.

Be very wary of any such callers, even if they say they are calling on behalf of your existing provider. ‘Slamming’ is a scam that occurs when you’re tricked into taking out a contract with a new provider - without your knowledge or consent. If this happens, you could end with two pricy contracts running at the same time!

Is someone calls to offer you an upgrade, always tell them you’ll think things over and call them back. Then call your actual provider and see if they were really the ones who called you!

5. Don’t fall into the cashback trap

Many contract offers come with the promise of lots of juicy cashback attached. While cashback itself is no bad thing, be very careful to read the small print.

Short-term incentives like cashback are often added on to mask the poor overall value of a contract. And actually claiming your dosh can be incredibly difficult and long-winded, as you’re often required to send in specific bills on specific dates to qualify.

If you do decide to go for a deal with cashback attached, choose one that lets you receive the cash upfront and straight away.

6. Dodge hidden costs

It’s also important to root out any hidden costs behind a contract’s ‘headline’ rate. For example, I was once given a quote for a monthly fee (over the phone) which didn’t include VAT.

Read Watch out for this mobile phone rip-off to find out more about the latest mobile VAT fiddles.

7. Go for last month’s model

Real tech geeks may well want the very latest handset model on the market, to be right at the heart of cutting-edge technology. The rest of us could probably choose one released a year ago and not notice the different.

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Choose a handset that’s been out just a few months and you’ll probably chop a big chunk of the price of your contract. And models that have been on the market for a while have an added attraction: Any technical or design glitches are already likely to have been ironed out.

8. Know your own needs

Finally, to get a phone contract that meets your needs, you need to know exactly what those needs are. It’s no good being offered unlimited minutes and texts (at a higher price) when you never talk for more than 100 minutes a month!

According to a recent survey by comparison site Bill Monitor, around three-quarters of mobile phone users are wasting an average of £200 a year - because they’re going for contracts that don’t suit them. Read You’re wasting £200 a year on your mobile to find out more.

So, when you’re haggling with your chosen provider, make sure you’ve got a breakdown of your recent usage in front of you, so you can argue from a place of knowledge.

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