12 Months Free Line Rental deals are by far the cheapest way to obtain and run a mobile phone. With a 12 months free line rental deal it is possible to get:

• A free mobile phone (handset)
• Free Inclusive Minutes
• Free Inclusive texts

Because these 12 months free line rental deals seem to good to be true, many people are suspicious of them. After all, why would a mobile phone retailer give away a 12 months free line rental deal? Where is the profit for the retailer? How can they do it? This article will answer those questions, and explain how it is possible to profit from a 12 months free line rental deal!

How Do 12 Months Free Line Rental Deals Work?

In a 12 months free line rental deal, the mobile phone retailer effectively gives part of their commission (from the mobile phone network provider) back to the customer. This money is refunded as a cash back, or cash back by redemption.

This means the customer (of the 12 month free deal) must order their phone, and pay the bill as normal. Then, later in the contract (typically from month nine onwards) they have the opportunity to claim their cash back.

Where the cash redemption is equal to one hundred percent of the total cost of the contract, the deal is described as being “12 months free line rental”.

Put simply, if the line rental on your mobile phone contract costs £25 per month, then over a 12 month period you will pay a total of £300. If the retailer gives you £300 back via cash redemption, then the total cost of your phone, and line rental is £0.

Is there a catch with 12 Months Free Line Rental Deals?

Mobile phone retailers are in the business of making money, not giving away free phones with free line rental! Whilst there is no “catch” with these deals, there are a few pitfalls. You must remember to claim your cash back on time. If you do not claim the cash back on time, then you will lose it, and your mobile phone may end up costing more on a 12 months free deal than it would have done on a standard contract!

Another “risk” with a 12 months free line rental deal is that the mobile phone retailer goes out of business before you have time to claim your cash back. Remember, the cash back deal is with the retailer not the network provider!

Whilst this (retailers going out of business before cash back is given) is rare, it has happened, and therefore needs to be considered when taking out a 12 months free deal.

How To Take Advantage of 12 Months Free Line Rental Deals

If you are considering taking out a 12 months free line rental deal, there are a few things you can do to ensure you are successful:

• Keep all documentation in a safe place
• Add dates for claiming cash back to your calendar
• Add dates for claiming cash back to your diary
• Set a reminder for claiming cash back in your new mobile phone

As long as you remember to claim back on time, and adhere to the terms and conditions of your contract you really can get a completely free mobile phone with 12 months free line rental!

Last 5 posts by Amanda

• 12 Month Free Line Rental Deals - April 4th, 2008