I got the HTC Desire with 300 minutes, 3000 texts and 500mb data on a 24-month contract for just £20/month with the phone itself costing me £55.

If you look at what the competition is offering, the same deal would cost £30/month at the Carphone Warehouse (although the phone would have been free), which over 24 months means that I’d have paid £185 more overall – including the cost of the phone.

It’s a similar story at Phones4U where the same deal again costs £30/month although the duration of the contract is lower. However, all is not as it seems. While Phones4U would claim that an 18-month contract is better than a 24-month alternative, in this case it simply isn’t. Allow me to demonstrate:

£30/month for 18 months and a free HTC Desire = £540
£20/month for 24 months and an HTC Desire for £55 = £535

At first glance Phones4U looks only slightly more expensive here, and if you speak to them on the phone they make a big deal about it “only” being an 18 month contract. However, for that you’re actually getting 6 months less service, and to have a working phone for the same length of time you’d need to extend the contract by another 6 months which would cost an additional £180 which brings it up to the same cost as the Carphone Warehouse. No-one only needs a phone for 18 months, and that’s what they’re relying on here to make their deal look more attractive. It doesn’t take much to see through their false logic though.

You could argue that with Phones4U you’d be getting your upgrade 6 months earlier than you would with Vodafone, but the £185 more that you’d be paying for a phone that works for 24 months would cover the price of an upgrade from Vodafone (for a similar phone) over 3 times over.

Vodafone’s UK Deals Team is also offering the HTC Legend on a similar contract for just £15/month (which is the one my father and two of my sisters have taken) and they have lots of other deals for different manufacturers as well.