Vodafone announce Red Hot; phone rental scheme

November 19th, 2012 Tags: , , , , ,

Sometimes a company offers something that’s actually quite innovative, and personally, I wonder if this is actually a very fantastic offer.

Vodafone has announced Red Hot, which is a scheme whereby you rent a phone (for a 12 month period), and also pay line rental, and then at the end of the 12 months, you can hand the phone back, and get a new phone. None of the traditional 24 month tie in that most mobile operators are concentrating on right now. Now, as with all these things, there’s a few good and bad points to consider if you are thinking about the deal:

  • It costs more than an normal contract, but then you get to change phones every year.

Let’s take the Samsung Galaxy S3 16GB, one of a small number of phones being offered on the deal (others include Apple iPhone 5 and the Samsung Galaxy Note II); normally buying on a traditional plan, it would cost £42 per month (24 month contract, unlimited minutes, unlimited texts, 2GB data per month on the new Red Data plan); the equivalent is £47 per month on Red Hot (12 month contract, unlimited minutes, unlimited texts, 2GB data per month). Given that the deal also includes insurance for the handset, it’s actually fairly comparable, and with the ability to change your phone after 12 months to the next greatest handset, quite a good deal.

  • If you don’t want to swap after 12 months (because the new phone you want isn’t quite released), you can hang onto the current phone for up to 6 months.
  • You don’t own the phone though, so although you can easily hand it back, you can’t sell it on ebay to recover any cost.
  • If you hand the phone back damaged, then charges will apply. Of course, with included handset insurance, it would seem sensible to claim on the insurance and then hand the phone back (assuming the damage is covered within the small print of the insurance, though an excess charge will apply).
  • You do need to return the phone and original charger.
  • With £75 charge for deep scratches or dents, you might be wise to buy a case to protect it (after all, it’s not your phone).
  • One final thing to watch out for; a “non-approved operating system” will occur the maximum damage charge, so you shouldn’t hand it back with a custom ROM installed (yes, I can see an argument that it’s still a variant of Android, but I suspect that’s not a gamble most people will want to take).
  • It’s not exactly clear how much a phone next year will cost, but of course, you would be free to walk away from the contract anyway.

Although there’s a lot to consider, I actually think the prices aren’t bad, and well worthy of consideration, especially for those who are happy to swap phones every phone (but not more often). More details can be found at the Vodafone Red Hot page.


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