Is It Worth Buying a Phone Bundle or Going Alá Carte?
Smartphone contract pricing: A financial analysis
Let's dive into the world of mobile phone deals, where bundles are seemingly irresistible, promising savings and unbeatable offers. But, be cautious - don't get blinded by the hype!
Here's a simple guide to help you decide:
Sensible Monthly Tariff Costs Without a Phone
The money-savvy folks at Finanztip set a benchmark for your calculation: Effective monthly contract costs without a phone shouldn't exceed €9, according to their assessment. These all-inclusive flat tariffs usually range between €5 to €9 per month and provide enough data for most users - from as little as 1 GB (light usage) to a generous 35 GB (heavy usage).
Calculating Your Deal
The calculation involves three steps:
- Determine the average monthly price of the bundle offer. Deduct discounts, add costs, and divide the total by the contract length (usually 24 months). Comparison sites like Check24.de, Teltarif.de, or Verivox.de often display the average monthly price.
- Research the cheapest market price of the phone (including shipping). Divide the phone's cost by the contract length.
- Subtract the calculated smartphone value from the average monthly price. The result is the monthly effective price of the contract without a phone.
Evaluating Your Deal
- If the result is over €9, you're often better off buying the phone separately.
- A result between €5 and €9 is a fair deal.
- A result below €5 is a good bargain.
- If the result is €0 or less, you're essentially getting the tariff for free!
- A negative result suggests that the phone is actually cheaper over the contract term when bought separately, but this is a rare occurrence.
In essence, following this 3-step guide will help you decide whether a mobile phone bundle or a standalone phone and SIM card plan is the better choice for you. Happy calculating!
- The money-savvy folks at Finanztip suggest that effective monthly contract costs without a phone should not exceed €9.
- When comparing phone bundles, it's essential to calculate the average monthly price of the bundle offer, deduct discounts, add costs, and divide the total by the contract length to find a fair deal.
- If the calculated monthly effective price of the contract without a phone is over €9, it's often better to buy the phone separately, while a result between €5 and €9 indicates a fair deal, and a result below €5 is a good bargain.
