by Paul Henshaw

Created on: June 01, 2008   Last Updated: March 06, 2011

In a nutshell, I think the intelligent answer is no cell phone providers should not be allowed to hold customers to long service contracts.  With the cell phone market reaching saturation point and no more new customers available to attract, it means the various big companies rely on enticing people to switch when they come to the end of their existing contracts and here is a few ways they go about tying you into a lengthy and sometimes very expensive contract.

The Free Handset, laptop, Internet connection or games console scam.

Yes, a free laptop wow! what a fantastic offer where do i have to sign, amazingly that's how some people think.  Offer them what seems a fantastic deal with an 18 month contact and the provider gets the money back for the free gift in a matter of months and you are stuck with an expensive contract that looks less and less appealing as the months go by.  Not such a good offer in the end and especially when you can buy laptops and games consoles at quite low prices if you shop around.

What does a lengthy contract mean to you the customer?

It basically means that you now belong to the cell phone provider and no matter how you are treated you will continue to pay your monthly fee while your provider moves on looking for new victims (sorry that should be valued customers,) offering them a better offer at a lower price and totally ignoring your needs because you are safely tied into a lengthy contract.
A long contract is an excuse for the provider to offer you a basic and sometimes poor service because it has no immediate risk of you leaving and just like a fish caught in a net you are no longer the focus of the fisherman.

No contracts, what would that mean for you the consumer?

Eliminating the lengthy contract would force the provider to offer excellent customer service and network performance or risk losing the customer to a rival.It would increase the level of competition between rival providers giving customers both a more efficient and cost effective service.  In order to achieve this we the consumer would need to stop agreeing to so called free items of technology in return for a long contract of poor and expensive service.

In summary

Yes, cell phone providers are in the business of making money but do we have to make it so easy for them by signing big portions of our life and earnings away for just a piece of the latest technology.  I personally think the answer is no,so take a minute or two when you get enticed with a free laptop and remember in this world nothing is free you always pay in the end.

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