Scam or not? 48 month mobile phone contracts

Not long ago, an 18 month contract was the “norm” and now increasingly we’re seeing 36 month contracts being offered by the network. Most people assumed they couldn’t get any longer, but incredibly there are now 48 month contracts available such as here – for an iPhone 7 no less. This model is already 4 years old – so why are networks offering 4 year contracts on older phones?

You may be surprised to learn that these 48 month contracts aren’t actually that bad value, in fact some may say they’re the best value contract you can get, short of a SIM Only deal.

Is a 48 month deal cheaper?

In terms of money, certainly, they work out quite expensive when you consider them as the overall term cost. But if you were to delve into the details of each deal you’ll see that in most cases they represent good value. Like with PCP on cars, the longer the contract the less monthly you will be paying – although when you consider the overall cost then of course that’s going to be more.

They’re perfect for people who know what they want, and prefer to have the lowest monthly price possible. If for example you have bad credit, then they may not be that good an offer for you – as the overall cost through the term will be higher, and thus the credit risk will likely be considered higher too. According to the Mirror, OFCOM are interested in / assessing regulating the sector more, and it’ll be interesting to see what they conclude on the matter of longer contracts.

Will we see more terms that are EVEN longer than 48 months, such as 60 months, coming soon? Even a few years ago that thought would have been ridiculous but who can rule it out now – anything is possible. And if consumers are demanding longer terms (i.e. the demand is there) then the networks will oblige them.