Pay-as-you-go savings just in time for Christmas

Posted: 4 December 2008

With Christmas around the corner, many people may be considering pay-as-you-go mobile phones as a gift for friends and family. And after a year that has brought a range of innovative handsets to the market - including the Apple iPhone 3G - it seems 2008 could be a year where the choice of handsets is wider than ever before.

There are a number of reasons why people may opt for pay-as-you-go (PAYG) packages, one of which could be the convenience of knowing a monthly bill is not going to be debited from your bank account or billed to your home. Another could be the opportunity to get hold of the latest mobile phones without the need for credit checks or long-term contracts.

For many, such tariffs represent better value in terms of versatility and how infrequently they can be used. Networks such as Orange, Virgin, O2 and T Mobile all offer deals on their PAYG mobile phones that include free minutes, texts or internet access. This means everyone can now take advantage of the rewards that have in the past been reserved exclusively for pay monthly customers – even if a consumer's usage level is low.

Another development in the PAYG market has been manufacturers' readiness to make available some of their latest handsets on both contract and prepaid packages. The most notable of these of course is the decision this year to make the Apple iPhone 3G available on pay-as-you-go.

In June it was announced by O2 and Apple that the eagerly anticipated follow-up to the original iPhone would be made available across the UK and Ireland from July 11th, although at first there was no mention of making the handset available on PAYG. However, this did not stop speculation that Apple would soon announce that the iPhone 3G would also be accessible to consumers who did not want to be tied to a contract – something which had not happened with the previous O2 contract-exclusive model.

Tim Cook, Apple's chief operations officer, said: "[The] iPhone 3G is an amazing product and we think customers in the UK and Ireland will love it as much as we do … We're excited to continue working with O2 to offer the revolutionary iPhone 3G to UK and Irish customers."

Sure enough, just over a month after the iPhone 3G had gone on sale, O2 announced the iPhone 3G would be available on its Pay & Go tariffs in the UK from September 16th – which could be seen as great news for those who were hoping to receive one for Christmas. Priced at £349.99 for the 8GB model and £399.99 for the 16GB version, O2 has added unlimited data and Wi-Fi for the initial 12 months of the iPhone's life on PAYG services – which, it claimed, consumers would normally be paying out an extra £120 for.

Commenting on the launch, O2 UK's chief executive Ronan Dunne said: "Launching iPhone 3G on Pay & Go opens up even more of the market for this innovative device."

"With inclusive data and Wi-Fi access for the first 12 months, Pay & Go makes it easy for customers to enjoy the best mobile browsing experience ever," he added.

The phone has gone on to win the praise of many in the industry, with online technology resource Trusted Reviews naming the phone as Best Mobile Phone at its annual honors just this week. Topping rivals including the Samsung M8800 Pixon and LG KC910 Renoir, the iPhone 3G was praised by the sites judges for combining 3G features with integrated GPS applications, as well as the "brilliant" Safari mobile internet browser and a host of multimedia capabilities that it added were not only innovative, but also simple to use. "Media playback eclipses everything else on the market - which is hardly surprising considering that there's basically an iPod Touch inside it," the website said.

Of course it is not only the most high-tech mobile phones that benefit from being available on pay-as-you-go tariffs. For many, the option provides a cheap alternative to staying in touch with friends and family, especially if their usage level is not as high as someone who may be better suited to a contracted handset. Indeed, the numbers of cheap PAYG mobile phones now available shows manufacturers are keen to put out a wide selection of models that cater to those looking for a much more economical option.

For example, not content with putting out one of this year's flagship eight-megapixel mobile phones in the Renoir, LG's KP100 Ruby has added to the company's product range with a model that is tailored to people who are looking for a phone that is not so tough on their pocket. Of course, in an economy where it seems everyone is attempting to save cash, this could be seen as great news – particularly ahead of the often-expensive festive season.

The slim LG KP100 Ruby is available in a soft silver finish and incorporates standard features such as predictive text messaging and polyphonic ringtones. The phone is also equipped with an integrated handsfree speaker, ideal for conferencing or group calls – and with networks such as T Mobile now offering the phone for £9.99, it could be seen as an ideal stocking filler.

Finnish manufacturer Nokia has also boosted its PAYG range with the Nokia 1200 and Nokia 2610, both simple handsets that come with a similar price tag and added support for mp3 ringtones – with the latter also boasting a WAP browser and email client support.

Other handsets, including the Sagem My53, could be ideal for the more budget-aware buyer. However, it is not just Apple that has made its top-of-the-line mobile phones available on pay-as-you-go. The Nokia N96, which is equipped with 3G connectivity, microSD support, a 2.8-inch LCD screen, multiple audio and video capabilities and a five-megapixel camera, is also now an option for those not looking for a contract mobile.

Other high-profile handsets launched on PAYG this year include the Samsung F480 Tocco and Sony Ericsson's music focussed W980i – but the networks have not forgotten the shoppers who are not in the market for a new handset. Indeed, those who do not want to leave behind their trusted mobile phones could still take advantage of the convenience and economical benefits of pay-as-you-go by opting for Sim-only deals. This allows consumers to purchase a Sim card that gives them access to PAYG network tariffs from the likes of Orange, Virgin and O2, without getting rid of their old handset – providing the phone supports the network.

With all these options and more, it seems there may be no need for shoppers to go without the best handsets and the cheapest deals this Christmas.

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