Mobile phone contract warning issued on 36 month small print

Dan Melia, from Mobile Phones Direct, has urged people to study the 'hidden' small print when they start looking for the best deal on their next handset.

Some phone providers have begun offering 36-month phone contracts as standard - whilst many customers assume they're still on a 24-month deal, the pro explained.

The phone often appears to be cheaper but it's just a result of the cost being spread over an extended period.

“One of the key things to keep an eye out for is contract duration, as many suppliers now promote 36-month contract deals as standard – and three years is a long time in the world of mobile phones, "the Mobile Phones Direct expert commented.

The pro continued: “It used to be the norm for mobile contracts to be 24 or even 12 months long, but these longer contract terms give providers the ability to spread costs over an extended period, meaning the costs often appear lower than they actually are. 

“A longer contract often means that consumers can miss out on upgrading to the latest device sooner as ultimately, they’re stuck with the same phone for three years - or sometimes more".  

Dan advised that opting in for 36-month contracts means you may miss out on maximising the future trade-in value of a phone.

He pointed out that it won't be worth as much after three years as it would after two.

He encouraged people to work out the true value of the handset combined with the contract length to ascertain whether the contract is right for them. 

The phone often appears to be cheaper but it's just a result of the cost being spread over an extended period. ( Getty Images) (Image: Getty Images)

The mobile phone expert continued by explaining that deals are often reported on from a handset-only pricing perspective.

As a result, you’ll likely see a number of deals on the latest phones for seemingly low monthly costs since it doesn’t include data or minutes.

The expert urged consumers to check the small print on the deals - leaving out some key details.

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He went on to say: “Many vendors promote their monthly handset costs, leaving the additional airtime or usage costs in the small print, luring shoppers in with cheap deals that stack up to be considerably more than was advertised once you add your minutes, texts and data plan in there.  

“Always check if the advertised cost is just the handset, or whether this includes any data and airtime. 

“I would advise everyone to shop around when it comes to looking for a new phone contract, and where possible, go for an ‘all in’ deal, inclusive of handset rental fee and airtime costs, giving you better transparency on what your monthly repayments will really look like.”