Business mobile phone contracts come in all shapes and sizes – varying contract terms, with and without smartphones, direct with mobile networks (Three, Vodafone etc) or via one of their many partners. There’s a lot to consider, and unfortunately, wherever there is complexity, there are those ready to take advantage.
However, Ian Horman from We Care Communications Ltd has the following advice to uncover one of the most common tricks used to dupe pre-occupied business people…
Many businesses arrange their mobile phone contract through an independent telecoms partner, rather than directly with a mobile network. There are very good reasons for this – perhaps a more personal service, keener pricing or additional services.
Commonly, the partner will offer a discount on the standard network tariff, which may either be reflected on invoices from the mobile network or paid directly to the business by the partner.
So far so good.
However, a variation of the latter arrangement has become increasingly prevalent. It’s not illegal, but the impact on those caught up (inevitably, mostly SMEs) can be severe.
How it works…
- The telecoms partner offers a 36-month airtime contract via one of the mobile networks. They promise a significant discount, in the form of a monthly rebate paid directly to the customer.
What’s the problem?
- The partner’s ‘discount’ is only good for 18 months. Once it expires, the customer remains committed to the contract for another 18 months, at the much higher standard rate.
- The only way out for the customer is to sign up to another 36-month contract via the same partner, in return for which the rebate payments are reinstated.
But, you’ve guessed it…
- Once again, the rebate is only valid for the first 18 months of the new contract – after that, it’s the same situation all over again.
- In fact, it never ends – unless the customer keeps signing new 36-month contracts every 18 months, they will be hit with massively increased costs.
- In reality, the customer is trapped. They can’t move to a new partner or mobile network and are left with very little leverage when negotiating contract extensions because, in general, they have little choice but to accept them.
Unfortunately, for many of the businesses hit by this practice, the contract terms only become clear once they are locked in. It’s all there in the small print of course, but how many people would sign up if the implications were genuinely made clear to them upfront, rather than tucked away in clause 73 section 5iii?
When you are signing up to your next mobile contract, please consider the following:
- Ensure discounts are valid for the entire duration of the contract.
- If the partner asks you to sign up to their terms and conditions in addition the mobile network agreement, ensure you read understand every line, particularly clauses relating to discounts and contract termination.
- Finally, simply demand that your contract with the mobile network reflects the agreed monthly fee, then there is no need to be concerned with rebates.
If you would like further advice, please get in touch.
Ian Horman
We Care Communications Ltd
Tel. 07977 459157
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