What is a 12 months free line rental deal? A 12 months free line rental deal is one which offers a cash back incentive to customers. To understand this, one must appreciate how mobile phone retailers operate. A mobile phone retailer will receive commission from the mobile phone network for each deal sold. As an incentive, some retailers may choose to give part of that commission back to the customer. A 12 months free line rental deal is a mobile phone deal, where the amount of cash back offered by the retailer is equivalent to the total cost of the contract. So, the total cost of the mobile phone contract, less the amount of cash back will amount to zero.

How do 12 months free line rental deals work? When entering into a 12 months free line rental deal, the monthly bill is charged as normal. This means, at the beginning of the contract the customer will receive, and must pay their bill as normal. Later in the contract (typically in months 9, 11 and 12) the customer has the opportunity to claim cash back from the retailer which sold them the 12 months free deal. Once this money is claimed back, the total, or overall cost of the contract will equal zero.

What is the catch with 12 month free line rental deals? Clearly mobile phone retailers are in the business of making money, not giving away free mobile phone deals! These companies rely on the fact that a significant number of people fail to claim their cash back on time. In a 12 months free line rental deal, a customer must claim your cash back in the weeks specified in the contract. If the customer fails to do this, then their cash back option is forfeit, and they end up paying the full amount for the phone. Another way mobile phone operators profit from 12 month free line rental deals is when the customer takes out a contract with an inappropriate number of inclusive minutes or texts. So, a customer may order a mobile phone with two hundred free minutes per month when they actually use three hundred. In these instances the customer may find that they actually pay more for their phone than they would have done had they opted for a standard contract. However, as long as the customer is diligent, there is no catch with 12 months free line rental deals.

How can I make a 12 month free line rental deal work for me? The key to being successful in the use of a 12 month free line rental deal is organization. As a customer or a 12 month free line rental deal must make sure they:

1) Know how many inclusive minutes and texts they need to order

2) Remember to claim their cash back on time

In order for a customer to ensure they claim their cash back they should keep all documentation in a safe place, and consider taking copies of the most important documents for storage in a separate location. They should also mark dates on a calendar, enter dates into a diary, and add a reminder on relevant dates in their new mobile phone. That way, when the time comes to claim cash back on their 12 months free line rental deal, they will not only be reminded to do so, but, will have all necessary documentation to hand.

Is a 12 month free line rental deal suitable for me? If, as a potential customer of a 12 months free line rental deal you know what kind of contract you need (in terms of inclusive minutes and texts) and feel you are organized enough to ensure you will begin the claim process in nine months time, then you are well placed to profit from a 12 months free line rental deal. If you are unsure as to your required usage (in terms of inclusive minutes or texts) or are not confident of your ability to remember to claim the cash back, then a 12 months free line rental deal is not for you!

What are the risks with a 12 months free line rental deal? As discussed, the risks with a 12 months free line rental deal are that the customer fails to claim the cash back in line with the mobile phone contract, or, that they do not order enough inclusive minutes with their deal (which may cost them a little more). However, there is one more risk not previously mentioned, and that is, that the retailer who sold you the 12 months free line rental deal goes out of business. Again, it is important to understand the relationship between the mobile phone retailer, and the mobile phone network. Although the customer pays their bill to the mobile phone network, the cash back deal itself is with the retailer. This means, if the retailer goes out of business between the time the 12 months free line contract was entered into, and the time the cash back must be claimed, the customer will lose their redemption (money). Although this is an unlikely situation, it is one that should be considered, particularly where the value of the 12 months free line rental deal is high.

Summary of Information on 12 months free line rental deals In summary, 12 months free line rental deals are genuine. It is possible to own and run a mobile phone completely cost free for 12 months. In order to do this successfully the customer must understand their own needs (in terms of the contract), understand the terms of the 12 months free contract, be organized enough to ensure they claim their cash redemption on time, and have confidence that the retailer will still be in business at the time they need to claim cash back.