If you're on a contract with your mobile phone provider, and your contract is coming up to renewal, it's most likely you can get a good bargain - just haggle with your network provider.
I'm saving £300 a year at the moment, and have been for the last 3 years. More on that later.
How it works: You'll often get a text telling you that you're eligible for a great handset upgrade. What that really means is: 'please stay with us, we need your business, and we'll give you a free phone if you keep paying us a monthly rate'.
Fine... if you want a new phone, the only way may be to sign on again for another 12 or 18 months. But don't accept the first deal they throw at you. The competition is fierce, and they know it.
To get a better deal, ring up your provider and simply TELL them you want a better deal. Make sure you get put through to their 'disconnections' department. Those guys have much more power, and will be able to offer you a much better deal. They're actually better known as 'customer retention' department if you talk to anyone working there. It's their job to keep you at almost any cost.
Sometimes you have to threaten to leave. Say it's too expensive and you're going to go back on to pay as you go (prepay), or a competitor. This is a bluff on your part.
They may then offer you a better deal, or even go to get your PUK code (cancellation code so you can go to another provider). But chances are they'll come back with an even better 'one last chance' deal before giving you a PUK code.
Each year, I have rung up my provider (O2) and asked for a better deal. Each time, I have ended up with a £30 per month deal (200 texts + 200 minutes) for only £5 a month. This saves me £300 per year. I mean, that is a lot of money!
The only down-side to my deal is that I don't get a new handset out of it. I don't care about getting a new phone though. My phone texts, calls, can take pictures (albeit not fantastic), play radio, play MP3s... That's all I need. I don't need the new technology.
But if you want the handset, you can keep trying for more... bundles of free texts, more minutes per month, discount on handset, shorter contract. Try everything! If it comes down to the wire and you're not sure, just say you'll think about it some more and end the call. You can always call up the next day, and perhaps get another operator who will be more generous, or try a different tactic.
The thing is, most people have a mobile phone now. So the mobile service providers have to fight to KEEP business, as opposed to getting NEW business.
Be courteous, coy, and a bit cheeky. Don't be aggressive, but do quote other providers deals and ask them to to better. It might help for you to do a bit of quick research and see what the other companies so you can use this as 'ammunition' to get a better deal.
The money I save monthly on my mobile bill pays for my Internet for the whole year, with £60 to spare on top of that!
Happy bargaining. Remember, if you don't ask, you don't get.