MOBILE company O2 has announced a major shake up of its phone contracts and the way that customers can get a new handset.
They will get the chance to swap their phones for a new one at any stage of their contract – and won’t have to pay a fee.
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With most phone contracts you usually have to wait until the end of the term to get a new device, or pay a fee to leave early.
With O2 Switch Up customers will be able to swap their phones for a different model as many times as they’d like.
The option will be automatically included in new and existing Plus Plans for no extra cost from August 11.
Customers can add the option to other plans as a Bolt On but this will set you back £3.99 a month, and you won’t get it with Sim-only plans.
There are no limits on how long customers need to have had their phones to be able to switch, and it does not matter how long is left on the existing contract.
But when you do get a new phone, your old contract will end and you’ll start a new one, so keep in mind that you’ll be locked in for longer than when you originally signed up.
As you’ll be choosing a new phone and starting a new contract, this could cost more than your current one.
So although there’s no fee, you could end up paying more.
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The phone your swapping also needs to be in a good enough condition, as they are refurbished and sold on.
You can choose from a new phone or refurbished phone when swapping.
Gareth Turpin, chief commercial officer at Virgin Media O2 said the company was giving customers “even more freedom and flexibility”.
He said: “O2 Switch Up gives our customers the power to decide what phone they have and when they have it, all on their terms and with the peace of mind that their previous phone won’t go to waste.”
O2’s website says “reasonable wear and tear” is acceptable, however it has listed a number of scenarios where you won’t be able to swap, for example if the screen is cracked or there’s water damage.
You also won’t be able to swap if your bill is in arrears
To replace your old device for a new one, you will have to take it into your nearest retail store, where it will be checked over.
Jake Edmonds, mobile expert at MoneySuperMarket said the feature could give O2 customers the option to get the latest handset without having to fork out for an early upgrade or early cancellation to change network.
But it might not be the cheapest option out there.
He said: “It’s worth considering that cheaper alternatives might be available, with indirect contract handset retailers offering exceptional value.
“Sites like sellmymobile.com let you trade in an old mobile for cash that you can use for a new contract, or to recoup money spent on early upgrades or cancellations.”
Of course, it’s worth shopping around for the best deals on mobile phone contracts.
Martin Lewis has previously revealed how to get the best deals.
And you can also save money when buying a new phone, by bagging a refurbished one.
If you’re looking for the best iPhone deal, we revealed some of the top picks.
