✏️ Exciting News: Our website is getting a fresh new look - stay tuned! 💻

flip logo white rgb
Book now

A Smartphone for nothing?

What Dr. Dr. Money says
smartphone
scroll down ancher
Is there such a thing as a free phone?
Posting a photo, checking out text messages from your friends, or playing a round of an online game – you can do it all, whenever and wherever you want. Plus, it’s all free of charge. Sounds cool, doesn’t it? Telephone providers often offer the latest mobile phone models free of charge or at very low prices. But making calls, texting and surfing the Internet costs money. That’s obvious enough. The question is, how much? And that is the problem with “free” mobile phones. When a mobile phone that normally carries a big price tag is being offered for free, then it comes with an expensive long-term contract. Do the maths, and you’ll see that even at a very low price, the new smartphone does not come as cheap as you may have thought. In fact, it may even be quite expensive.

Shop around – and compare mobile phone contracts

You want to buy a new mobile? Do the maths: add up the total cost and make a comparison. Check out alternatives – compare different offers. You can save a lot of money that way! For two years, supposedly “cheap” smartphones with a contract often cost more than devices without a contract. Here is a sample calculation.
Smartphone with contract (24 months commitment) Smartphone without contract (same term)
Acquisition costs € 0 € 1.099
Monthly basic fee (comparable service) € 59 € 10
Service fee (1x per year) € 27 € 0
Total costs € 1.470 € 1.339

Check out the numbers!

Base rate
When you get a mobile phone with a service contract, you will typically have to pay a certain sum per month: the base rate. This is a flat rate which covers a certain number of text messages, minutes of telephone calls, and Internet access.
Additional services
If you use your mobile phone more, you will have to pay extra. Before signing a service contract, you should get information about each cost item and about the term of the contract.
All-in contracts
Find out what will happen if you exceed your allowed data transfer volume: will you have to pay extra, or will the provider just slow down the data transfer speed on your phone?
Term of contract
Early termination of a contract is very difficult once you have agreed to a fixed contract term. You also have to continue making the payments if you lose the mobile, or if it breaks.
Notice periods
After the original contract term has expired, you may still be subject to long notice periods. With a notice period of three months, for example, you have to notify (inform) the provider three months in advance if you want to terminate the contract. The notification often has to be made in writing.
Service charge
Do not forget any one-off cost items.
Buying apps
Many apps require higher data transfer volumes than you may think. That is because they keep running and stay online even if you don’t have them on your display.
Going abroad
When you are abroad, you will be charged more than at home. Take care to check your mobile’s settings! Some people have had to pay huge sums of money because they forgot to deactivate data roaming functions during a stay abroad. Do not forget to deactivate online data transfer functions. If you are not sure about the technical side of things, just switch off your mobile when you are abroad and enjoy your holiday without being bothered by online stuff.
Dispute resolution by the RTR
If you think your mobile bill is incorrect you can turn to the arbitration body of the Austrian Regulatory Authority for Broadcasting and Telecommunications (RTR). It will also help you if you have any other problems with your mobile provider. Find out how on the RTR website.
A Smartphone for nothing?

What Dr. Dr. Money says

You are currently viewing a placeholder content from YouTube. To access the actual content, click the button below. Please note that doing so will share data with third-party providers.

More Information
Unblock content Accept required service and unblock content

FAQ

No – even if a cell phone is advertised at 0 euros, you usually pay extra with an expensive contract with a long commitment.
Because high monthly basic charges, flat-rate service fees and long contract terms often cost more than buying a cell phone directly with a low rate.
Find out about the basic fee, additional costs, contract duration, notice periods and service flat rates – and compare alternatives.
Deactivate mobile data outside the EU, use WLAN and find out about the roaming conditions of your tariff.

Subscribe to our newsletter*!

Stay up to date with our newsletter –
subscribe for new tour dates and important updates.
*only available in German
Register now

Mehr zu Account & Payment, Debts

Pocket Money Guide
All about money, Money & Happiness

Pocket Money Guide

Taschengeld als Instrument: Kinder und Jugendliche lernen den Umgang mit Geld Kinder und Jugendliche lernen den Umgang mit Geld. Welche Dinge gibt es dabei zu beachten?
Read now
Why do we pay with euros?
Money & Society

Why do we pay with euros?

The euro is the common currency of 19 EU member states and six other European countries. In Austria, we have been paying with euros since 2002. Despite some criticism here and there, the story of the euro is a success story. How come?
Read now
Designer clothes<br>Do you really need them?
Money & Happiness

Designer clothes
Do you really need them?

Branded clothes are “in”, but are they worth the money? Or is the saying true: “Buy cheap, buy expensive?”
Read now
Choosing an occupation
Education & Career

Choosing an occupation

When you leave school, you may still want to become a prince or princess, or maybe a racing driver – but most people tend to opt for other professional fields.
Read now
How does a banking crisis come about?
Banks & Economy, Money & Society, Debts

How does a banking crisis come about?

The banking business is associated with certain unavoidable risks. What happens when banks go bust?
Read now
The right to your own account
Money & Society, Account & Payment, Debts

The right to your own account

Living without a bank account is possible, but it is difficult. The European Union has therefore decided that every person has a right to an account.
Read now
Fixed costs – electricity and gas
Account & Payment, Debts

Fixed costs – electricity and gas

You want to save ten euros each week. But how to get started?
To decide that, you first need to know what your fixed costs, or fixed expenses, are.
Only if you know how much money you need to spend each month
will you be able to find out what your potential savings could be. To decide that, you first need to know what your fixed costs, or fixed expenses, are. Only if you know how much money you need to spend each month will you be able to find out what your potential savings could be.
Read now
Apprenticeship
Education & Career

Apprenticeship

Thinking about doing an apprenticeship? We have some good reasons for you why an apprenticeship might suit you.
Read now

Subscribe to FLiP News

Updates on exhibition, program & events

Subscribe to FLiP News

Updates on exhibition, program & events