O2 has announced a new approach to smartphone contracts, enabling customers to easily swap their current phone for a newer, more desirable model while they are still under contract.

Dubbed O2 Refresh and running over the standard 24-month term, the new contracts separate the cost of the handset from the price customers pay for their monthly allowances.

The shift means that consumers can choose what they pay upfront for their handset and then pay off the remaining balance on their handset-only contract if a new smartphone catches their eye.

Conversely, the airtime part of the contract can be cancelled at any time, with no obligation to pay the remainder.

Ernest Doku, telecoms expert at uSwitch.com, said: "The speed and frequency of new devices launching means that many consumers are finding it increasingly frustrating staying committed to one device for the duration of a two-year contract.

“Tech-loving O2 customers will now have the freedom to get their hands on the latest devices as soon as they hit the shelves thanks to the innovative way they will pay for their handset and airtime separately.“

He added: “However the sting in the tail is that people could end up paying over the odds for devices. Consumers can get hold of a HTC One for £489.95, but opting for O2 Refresh would see them having to part with almost £530 in total for the phone.

“Those who can afford a handset upfront could be better off buying the device and opting for one of the great SIM-only deals available.”

O2’s move comes as more and more phone-makers refresh their flagship phones annually, as well as the boom in upgrade culture among mass-market consumers.

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O2 has slashed the upfront cost of owning a Samsung Galaxy S3, as part of a very limited-time flash sale.

The bubbly network is currently offering Samsung’s third flagship smartphone free on a two-year contract at just £27 per month.

This furnishes takers with monthly allowances of 600 minutes, unlimited texts and 750MB of data.

Sadly, the offer is only valid until May 8th (that’s tomorrow), meaning you’ll have to be pretty quick if you want to take advantage of it.

With over 30 million handsets sold worldwide, the Samsung Galaxy S3 is by far the most successful Android smartphone to date.

Powered by Android Jelly Bean with Samsung’s Nature UX interface coated on top, the Galaxy S3’s feature sheet takes in a 4.8-inch Super AMOLED HD display, a 1.4GHz quad-core processor and an eight-megapixel camera.

It’s also home to a host of software features, such as Smart Stay, which keeps the screen on so long as you’re looking at it and Pop Up Play, which is a picture-in-picture mode that lets you watch a video even while working on other things.

O2’s price cut comes following the much-trumpeted launch of Samsung’s latest flagship kit, the Galaxy S4, which went on sale late last month.

This packs a five-inch full HD display, a 1.9GHz quad-core chipset and a 13-megapixel shooter.

Got the Galaxy S4 already? Let us know what you think in the comments section below.

Via:

O2

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