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Phone 4u Launches JUMP Contracts

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As competition in the smartphone market continues to hot up, retailers and networks are having to come up with more and more innovative ways of attracting customers.

Last week we saw T-Mobile launching The Full Monty contract for those wanting the maximum calls, text and data package and now Phones 4u has announced a new contract called JUMP (Just Upgrade My Phone) for customers who wants to upgrade their smartphone every six months.

Customers taking up the offer won’t need to stump up a lump sum of cash every time they want to upgrade but will instead pay a premium of between £2.99 and £3.99 each month on top of their current contract. The contract guarantees the customer that their phone will be worth at least £100 for a year (as long as it actually turns on) and if you want to get the cost of the upgraded contract down even more, you'll be allowed to add in two more handsets you might own.

Phones 4u

The company has been trialling this since May last year in 100 stores but is now rolling it out to all its 586 stores in the UK as well as online and over the phone. The company said the new contract proposition grew out of research it carried out which showed that users were frustrated at their inability to upgrade handsets sooner.

“JUMP’s unique proposition is that instead of offering one contract to customers with a mobile network, it’s been broken down into two; one with the airtime provider for minutes, texts and data and one with Phones 4u for the handset, which are both for a minimum term of 24 months. This provides the customer with total ownership of the handset and their monthly pay plan,” said Alistair Firth, Director of Customer Development at Phone 4u.

Here’s an example of how it will work:

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            £28.49
£9.95 over 24months

Total new JUMP cost                                  £38.44

Plus airtime (dependent on airtime package) £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               £28.49
£5.25 over 24months

Total new JUMP cost                                     £33.74

Plus airtime (dependent on airtime package)   £20.00

New monthly commitment                             £53.74

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