How bundled handset contracts work and what to check before signing.
Ask Our Team →Pay Monthly bundles a new handset with your airtime (data, calls, texts) into one monthly bill. The handset cost is spread over 24 months at 0% interest. Most networks bundle device and airtime together — O2 shows them separately via Refresh.
O2's Refresh shows Device Plan and Airtime Plan as two separate agreements on one bill. Pay off device early to reduce monthly cost. Switch Up: upgrade at 11 months by paying remaining device balance.
Upgrade handset every 12 months on a 24-month contract by returning current device in good condition — without paying remaining balance. Requires credit check. Subject to device condition assessment at return.
All four major MNOs apply annual rises to Pay Monthly plans. EE charges £4/month on handset plans from March 2026 — higher than SIM Only. Tesco Mobile's Clubcard Price plans freeze the rate even on Pay Monthly.
To check: find SIM Only price for equivalent data on the same network, then add the phone's retail price ÷ 24 months. If Pay Monthly costs more than this sum, you're paying a convenience premium. For existing phone owners, SIM Only is almost always more economical.
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