12 Months Free Line Rental: Enjoy Cash Back Incentives

Aug. 13, 2008 - PRLog -- The 12 months free line rental is one of the best lucrative offers by the network provider. In this, the users enjoy cash back incentives, as money is claimed back after completion of the contract. Therefore, the total or overall cost of the contract is equivalent to zero.

In this article, we would be talking about the 12 months free line rental, what all benefits these deals used to come with and the reasons behind its unpopularity in the recent times. It is a fact, the high end mobile phones with attractive features and functions often lure mobile lovers and tech-savvy users. There are many lucrative offers which are provided by the mobile manufacturing companies and the service network providers these days. To make the purchase of high-end phones easy, a contract deal is very beneficial to the users, as it offers maximum benefits. These deals allow the users to free themselves from the monthly payment option. As a matter of fact, the deal allow the users to plan their budget for mobile phone bills. The contract deal is one which offers a cash back incentive to customers.

Under the contract deal, the users enjoy various benefits and free gifts such as 12 months free line rental, LCD TV, laptop, gaming console, free talktime, text and lots more. These gifts are offered by providers in collaboration with mobile manufacturers. A 12 months free line rental for instance, is offered by the network provider, where users are offered cash back incentive. To understand this, one must appreciate mobile phone retailers. The mobile phone retailer receive commission from the mobile phone network when these type of deals are sold. In the 12 months free line rental, the amount of cash back offered by the retailer is equivalent to the total cost of the contract. To be more specific, mobile users are at maximum benefit as the total cost of the mobile phone contract is zero, by deducting the amount of cash back.

In the contract deal, the monthly bill is charged as normal. In the beginning of the contract, the users will receive and pay their bill as normal. But later completion of the time period, the users have the opportunity to claim cash back from the retailer who sold them 12 months free deal. Therefore, when the money is claimed back, the total or overall cost of the contract will be equivalent to zero.

Importantly, the users must claim for cash back in the weeks specified in the contract. If the users fails to do this, then their cash back option is forfeit and they end up paying the full amount for the phone. Apart from this, another way by which mobile phone operators profit from 12 month free line rental is when the customer takes out a contract with an inappropriate number of inclusive minutes or texts. In these cases, the customers find that they are actually pay more for their phone than a standard contract.

From the users point of view, the 12 months free rental is very helpful. This deal is for less time period means there is only 12 months contract and which customer easily complete. And after completion of the contract, the retailer is forced to pay all cash back and this is the reason mobile industry going in loss.

The mobile retailers have been suffering great losses due to the 12 months contract phone deals. This is because a major portion of the mobile users, opting for these types of deals, are using the deal services for a period of 12 months, which means that the mobile retailer offering the deal has to pay the respective cash back after the end of the 12th month as per the contract deals. The 12 months deal was previously enjoying wide popularity but the popularity wave has started drifting to the losing side these days.

One of the major reasons why this deal is not appreciated by the retailers is that since these types of deals, usually, involve a free gift such as LCD TV, Nintendo Wii and Sony PSP to name a few and the mobile users completing their contract tenure, the overall profits gained by the retailer are actually turning to be losses these days.

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