O2 and T-mobile to offer the choice of reduced tariffs or phone upgrades

Mobile phone operators have started to offer their customers the choice of a reduced tariff plan or an upgrade mobile phone as part of their contract renewals.

It is hoped that customers who are happy with their current handsets will choose the reduced tariffs instead of a new device, meaning that the mobile operators will save money on new handsets (which they heavily subsidise) and also help their customers save during the credit crunch.

Currently both O2 and T-mobile are offering the new deal, which could mean a saving of up to £15 a month for customers who choose to keep their current mobile phone and renew their contract. Both firms are keen to point out that there is still the option to upgrade handsets if the customer wishes.

This new plan may be picked up by the other mobile phone operators, with the whole industry making a major switch towards longer 18 month contracts to retain customers.

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