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I have been a loyal vodafone customer for 15 years. I have been on bill pay plans for a number of years. Last year I was on RED Connect €60 / month and I had to pay €100 upfront to get S7 phone. My contract ended today and I was given 2 options:
1) €60 RED CONNECT SIM + S8 plan for 24 months and pay €150 upfront, which would cost (60 x 24) + 150 = €1610 over 2 years.
2) €35 RED CONNECT SIM only plan for 12 months and buy S8 from Vodafone for €580. If I renewed this after year 1 then it would cost (35 x 12 x 2) + 580 = €1420 over 2 years.
The girl on phone said the €60 plan was great value as you get an S8 for €580, but this simply is not true. The difference between option 1 and 2 is €190, which means I am paying this extra €190 for the S8 for Option 1.
I can buy a new S8 handset for less than €500. What a RIPOFF !!
Thanks for your post. When you upgrade or take out a new contract, you're receiving a phone at a heavily subsidised price in exchange for a bill pay contract term. Some people prefer to purchase the phone outright and for that option we have SIM only billpay or PAYG plans.
In terms of the contract ending, when your contract ends, you stay on billpay on a month to month rolling basis. The reason for this is that more often than not, people will want to retain services so we keep the service as is (i.e still on billpay) until it has been requested otherwise. A billpay contract differs to a bank or Credit Union loan, as once the loan has been cleared, it's purpose has been served. However, with billpay, people will still require phone services, so it's for this reason things are left as they are until a customer asks us to cancel/ move to PAYG, etc. If you're opted into marketing communications, callbacks when out of contract are a possibility