Phones4U announce the ‘JUMP’ tariff – upgrade your phone every six months.

Phones4U have introduced a new tariff, called “Jump” which stands for ‘Just Upgrade My Phone’.

The basic principle involved is the monthly payment is split into two, with your service provider (Orange, Vodafone etc) providing the minutes and texts, whereas Phones4U provide the handset. They both still run for 24 months, but the handset can be upgraded after six…


If you want to change your handset after six months, Phones4U will take your old handset, offset it against the cost of the remaining 24 month deal, charge you some more money, and hey presto, new phone.

Confused yet? It’s fairly convoluted..this video explains everything. Some examples from the press release can be found below too, which should help.

the only slightly worrying thing here, is the handset’s worth will be debatable after the first six month period. Disagree with Phones4U’s valuation of your handset? Tough. You won’t be able to shop around, so you’re stuck with selling your handset privately (which means the process is no different from conventional contracts).

Let us know your thoughts, is this a viable alternative to buying your own handset and using sim-only tariffs?

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Example plans to upgrade to the new iPhone 4S on JUMP

 

A customer could take out a standard contract for a non-iPhone device on a £35 a month tariff.  Alternatively they could purchase it on JUMP for £37.99 on a 24 month agreement

Today on JUMP                                                                               £37.99

Split as

Airtime commitment with Orange                                                  £15.00

 

JUMP service agreement 24months                                            £22.99

           

Move to iPhone 4s after 6 months

 Balance outstanding on JUMP

= 18months @ £22.99                                                                     £413.82

Trade in value of handset*                                                             £175.00

(You can trade in up to 2 more additional handsets to increase your total trade-in value and reduce your remaining balance further)

 

Balance remaining                                                                          £238.82

Split over new JUMP contract (per month)                                  £9.95

(No need to pay upfront)

Monthly cost of iPhone 4s on JUMP service agreement          £28.49

+ £9.95 over 24months

Total new JUMP cost                                                                      £38.44

Plus airtime (dependent on airtime package chosen)              £20.00 

New monthly commitment                                                           £58.44

 

Move to iPhone 4s after 12 months

Balance outstanding on JUMP

= 12months @ £22.99                                                                     £275.88

Trade in value of handset*                                                             £150.00

(You can trade in up to 2 more additional handsets to increase your total trade-in value and reduce your remaining balance further)

Balance remaining                                                                          £125.88

Split over new JUMP contract (per month)                                  £5.25

(No need to pay upfront)

Monthly cost of iPhone 4s on JUMP service agreement          £28.49

+ £5.25 over 24months

Total new JUMP cost                                                                      £33.74

Plus airtime (dependent on airtime package chosen)              £20.00

New monthly commitment                                                           £53.74

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  • Craig

    Good article Mark – I can’t see it catching on though.  Too convoluted for many I’d guess.

    Be better to go SIM free and sell your handset and buy another whenever you wish.

  • Burniplee

    i think its exspensive i would love the old 12 month contracts back (still to long for me lol)