Handsets with contracts

[NAMBLA]

Do mobile network providers in HK not subsidise the actual handsets for customers like they do in UK and USA? I'm thinking off getting a new phone on contract but there seems to be no benefit from getting the device directly from Smartone or CSL or one of the others and buying it from Broadway and then get a data package. You will always be paying the full cost of the handset even from the network provider. Or have I misunderstood?

[jimbo]

How it works is that you're 'paying' say $6000 for the phone on a two year contract.

The $6000 will be 'returned' as credit over the course of the duration of the contract.


Buy the phone and get yourself a one year sim only contract, That's what I used to do.

Also less painful if you have to leave HK mid contract

[HK_Katherine]

I figured this out pretty soon after arriving. Seems incredible that this scam is accepted by consumers though!

[Claire ex-ax]

I don't understand why people buy their phones on these contracts. If they get a phone on a 24-month contract and they break that phone 6 months in, they STILL have to pay another 18 months on it (or pay the remainder off in one go) AND buy another, presumably on the tick again.

And what happens when the next super duper model comes out and you're still paying for an old phone?

It doesn't make fiscal sense.

[MandM!]

The bad part is that your phone plan might be

$400 per month, but somewhere in the contract it says $200 discount, normally $600 per month.

If you cancel early, they charge you the remaining term at the FULL price (e.g. $600 per month) plus a cancellation fee of $500 I believe.

The ONLY reason that you buy a new phone with a contract, is/was if you want the new iPhone and they reserved their stock for those who sign new contracts. Otherwise people had to wait 8-12 months to get the new iPhone. Also, what I did one year was I signed a contract, got the new iPhone and I sold my iPhone at something like 9k, which covered the 2 year contract plus the cost of the phone. But you can't do that anymore, unless Apple comes up with something amazingly new.

So, you can:
1) Buy new iphone from Apple store
2) Buy phone from Broadway or Fortress
3) Buy a used phone off forums (geoexpat, asiaxpat, facebook groups, etc.)

Then unless you need something special, get the unlimited data (3-5GB at fast speeds then slows) plan for something like $128/month.

Use phone that you purchased separately with the new plan.

Some carriers will give you about a $500-1000 discount on a new phone when you sign up the cheap plan and buy a phone through them. I think SUN mobile does this, so just ask if you want a new phone.

[NAMBLA]

How it works is that you're 'paying' say $6000 for the phone on a two year contract.

The $6000 will be 'returned' as credit over the course of the duration of the contract.


Buy the phone and get yourself a one year sim only contract, That's what I used to do.

Also less painful if you have to leave HK mid contract

I don't understand. What you mean it will be returned as credit? I went to smartone for example and the LG v20 is something like 5500 plus 24 x 198 = 4700 contract so that's about 11k I will pay in total. What do you mean by credit?

Usually in UK or US Vodafone, Carphone Warehouse, T-Mobile will give you the handset for free or at a decent discount on the non contract price, but seems not in hk unless I can't do maths!

[MandM!]

No discount la.

The credit just means you do installments.

You can buy the phone up front and the refund you the phone over 2 years. Yet your contract price is crazy.

Or you buy the phone with your credit card. They hold the amount on your card against your limit for the entire period. Your credit card charges you 1/24th every month and then the phone company gives you 1/24th credit against your crazy monthly contract price.

Shuffle of funds. Don't make it confusing.

Example:

Your contract $400/month
Your phone $4800 (/24 is $200/month)

A) Pay $4800 cash for your phone
Every month $400 - $200 = $200 to your phone company

B) Use your credit card as collateral for your phone
Every month $400 - $200 = $200 to your phone company
plus
Pay your credit card $200/month

The phone won't be just $400. They get you by forcing you to buy VAS at $36-38++ per month and tunnel fee $18/month.

There is no discount. Buy the phone outright irrespective of the plan.

[NAMBLA]

No discount la.

The credit just means you do installments.

You can buy the phone up front and the refund you the phone over 2 years. Yet your contract price is crazy.

Or you buy the phone with your credit card. They hold the amount on your card against your limit for the entire period. Your credit card charges you 1/24th every month and then the phone company gives you 1/24th credit against your crazy monthly contract price.

Shuffle of funds. Don't make it confusing.

Example:

Your contract $400/month
Your phone $4800 (/24 is $200/month)

A) Pay $4800 cash for your phone
Every month $400 - $200 = $200 to your phone company

B) Use your credit card as collateral for your phone
Every month $400 - $200 = $200 to your phone company
plus
Pay your credit card $200/month

The phone won't be just $400. They get you by forcing you to buy VAS at $36-38++ per month and tunnel fee $18/month.

There is no discount. Buy the phone outright irrespective of the plan.

OK thanks for the explanation!! I guess I will just buy from Fortress / Broadway, never from the carrier, not much point.

[MandM!]

If you like all the rubbish apps, buy from the carrier. They install about 30 apps on their phone which takes forever to remove and some can't be removed. Pop ups and ads. Annoying as F.