What’s different is there are two separate contracts that this single payment covers:
· Your usage contract is for your monthly minutes, texts and data
· Your phone contract is for your phone payments
For example: say you take out a 24 month contract and then decide you’d like a new phone after six months. Normally, you’d have to pay an early termination fee on your tariff. With this deal, you pay off your phone contract only and then you’re free to upgrade to a new phone and usage contract with Tesco Mobile.
For example: let’s say you pay £30 a month and your handset contract makes up £20 of this cost.
You’ve also got the option to pay off your phone contract early and keep making the usage payments each month.