I phoned O2 today (UK Mobile supplier) to change Mrs JP from monthly contract to pay per view. The phone's in my name so they need me to phone. The lad said to me, rather than do that I can offer you a more appropriate contract. Mrs JP said "No, I just want to go to the pay as you go option". I suggested she listen to the fella, as it sounded like a good deal to me. She grudgingly agreed to this
Years contract - 100 minutes and 100 txt messages per month for £0. Yup no payment for the contract and nothing per month. The lad even gave us his full name, ext, managers name and ext to convince us that he wasn't joshing. As this allowance is more than her current use we took it.
I asked the chap to explain the business sense of this and he explained it thusly.
1. It costs them about £150 in admin to make the change.
2. They realized that they were losing customers and set up a "Retention Dept" which is who I was talking to.
3. They normally give such a deals to people who are paying for a handset, so get the full (non contract reduced) price for the phone.
4. I was a good spud and they wanted to keep my custom, therefore he offered me the deal, sans purchase of new handset.
So that's the phone free for a year - result.