Mobile Phone upgrades
13 December 2011
If you are coming to the end of a mobile phone contract which includes a smartphone you may be tempted to jump ship to another provider, to get better network coverage or to reduce costs. A few words of warning!
Once out of contract (or within contract, by paying a financial penalty) it’s easy to swop phone providers and change phones. Your existing provider will be happy to “upgrade” you to a new smartphone, on a new contract, and lock you in for 12-24 months. Alternatively you can jump ship, take your phone number to a new provider and setup a new contract. This is where it can get messy
Transferring your number requires your existing provider to give you a PAC code. The PAC code is then used by the new provider to transfer your number to their network. This is a pretty painless procedure and can usually be actioned next-day with the transfer done in 24-48 hours. The action of issuing & using a PAC code terminates your contract (if any). A final bill will be sent by your old provider, generally within 14 days of the PAC code being used. Your old contract is now dead
Your new provider or phone store will supply a new phone with an existing SIM card & phone number. This will work out of the box. Once the PAC code is used the phone number supplied with the new phone will die and “your” number will be ported over to it
Now you have a new phone, a new contract, your old number and 14 days to decide if you like the service & network. If you do, great – you’re all set. If you decide to leave things get complicated. Your number is now on the new network and can only be released by generating a PAC code. The PAC code cancels your contract. Even though you are within the 14 day period the provider considers this a cancellation within the term of the contract and they will tell you they want payment of the full contract – normally about £1200. You’ve signed a Direct Debit agreement, so you are liable
The only way to exit the new contract gracefully is to return the new phone, box, sim, packaging, etc, in perfect condition to where you bought it. Once returned, and logged into the returns system, the contract will be terminated within 24 hours or so. Only then will the network issue a PAC code without demanding or threatening a demand for payment. If the PAC code is used on a Friday your number won’t be returned to you till the next Monday – this Billion-Dollar business doesn’t work weekends
To avoid problems I’d recommend doing the following:
- buy the new phone & contract in a dedicated shop that is local to you
- sign up the new contract with a new phone but keep your old contract live while you test the new network
- If switching networks, only use the PAC code when you are 100% sure the new network meets your needs
- keep all the packaging and documentation
- cancel unwanted Direct Debits as soon as possible
There’s another alternative that suits the current financial climate very well: Exit your contract, retain your phone and sign up for a SIM-only contract with the correct balance of call time, data and texts to meet your needs. This can be done at any time after your contract expires. If you’re still paying £50-odd a month, call your provider and jump to a new contract paying £15 a month for the same package
A few more notes:
- if you have an iPhone 3GS with IOS 5 you can back it up in iTunes and restore all your data to an iPhone 4S. All you will need to input are your email & Apple Store passwords. Your texts, apps & etc will all be retained. This means upgrading from one model of iPhone to another is painless
- the only provider in the UK to support visual voice mail on the iPhone is 02
- once you hand a phone back you will lose your texts & voicemail for that phone. Your voicemail will still be accessible remotely till the contract ceases. It is best to activate voicemail and set a PIN before handing back the phone
- when keeping your handset and changing providers, once your new provider goes online your stored visual voicemail & texts from the old network will disappear from your phone
- stores that sell all networks (Apple Store, for example) will give better advice about local network quality than single-network stores
- UK network provider coverage maps are useless
- 3G is a “breathable” network so your signal will vary all the time. Often you’ll be able to connect to 3G but then lose connectivity – this is because the network has bumped you off in favour of someone else closer to the antenna
- the 4G network, starting in 2012, should give better reception than 3G. 4G will require a new handset
- a PAC expires in 30 days if not used. Further PAC codes can be issued
- issuing a PAC code when out of contract does nothing. The move is actioned when the PAC code is used by the new network
- issuing a PAC code when in contract ceases the contract immediately
- SIM-only contracts usually allow upgrades during the contract period
- Retaining your old smartphone, even temporarily, can be a smart move
- unwanted smartphones can be sold to offset the cost of a new phone
- usually you don’t own “your” number
- Networks change over time. The provider you liked two years ago will be different when you return
- 3G network coverage is patchy, variable and will deteriorate as smartphone usage increases