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Effective Monthly cost and Line rental

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Old 12-08-2007, 5:58 PM   #1
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Effective Monthly cost and Line rental

Hi,

My xbox 360 packed up the other day. So i'm looking to buy a mobile phone with a free xbox 360. I've been checking the net and i'm a bit confused.

This is the phone: http://www.dialaphone.co.uk/buyat1/offer/35FLEXT695/

It states Line rental £35 per month. and effective monthly cost £37.78. So would i have to pay both? a total of £72.78 per month?

I'm sorry if this is a stupid question, but i currently have a pay as you go, and i'm not too clued up on contract phones.

Many thanks

Mark.
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Old 12-08-2007, 6:20 PM   #2
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Re: Effective Monthly cost and Line rental

The effective monthly rental is a bit like an APR. It is meant to demonstrate the true cost each month of the phone. E.g if you had a 12 month contract with 6 months free line rental then the effective monthly rental is £15 per month (since you are only paying only half of the contract)

Way to work it out is cost per month = ((line rental * length of contract) - (sum of any free line rental) + initial cost of the phone)/length of the contract

So the short answer is that you will be paying the £37.78 figure each month
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Old 12-08-2007, 8:32 PM   #3
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Re: Effective Monthly cost and Line rental

Quote:
Originally Posted by itsamac View Post
The effective monthly rental is a bit like an APR. It is meant to demonstrate the true cost each month of the phone. E.g if you had a 12 month contract with 6 months free line rental then the effective monthly rental is £15 per month (since you are only paying only half of the contract)

Way to work it out is cost per month = ((line rental * length of contract) - (sum of any free line rental) + initial cost of the phone)/length of the contract

So the short answer is that you will be paying the £37.78 figure each month
Thank you for clearing that up for me. Your response is very much appreciated.
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