Mobile phone retailer Phones4U has rolled its double contract scheme, JUMP, nationwide after being trialled in two regions across 100 stores since May 2011, where it was reportedly very successful.
Jump, which stands for Just Upgrade My Phone, is in a nutshell a SIM-only package with a separate phone package thrown in, plus a built in trade-in for switching devices before the agreement ends.
JUMP essentially allows you to get three options rather than one. You can purchase an additional phone, purchase another traditional contract or wait until your contract has ended.
Phones 4U says that it will pay at least £100 for the first twelve months, although the phone must be functional, though wear and tear is acceptable, and reckons that it provides "the ultimate flexibility when it comes to changing your handset".
In the example provided by the company, someone buying a phone on a £35 monthly tariff on a two year contract, would pay an additional £2.99 per month to enroll in the JUMP service agreement.
Swapping over to a 16GB iPhone 4S after six months will cost you £413.82 (18 remaining months @ £22.99) out of which you'd need to deduct the trade-in value of the handset (Phones4U quotes £175 for the handset, which could be the Samsung Galaxy S2).
The opening balance for the new contract would be £238.82, which is then lumped with a new two year contract as a no-interest loan at £9.95 per month on 24 months.
On the JUMP service agreement, the monthly cost of the iPhone 4S smartphone alone is £28.49 (or £683.76 assuming you stay with the same phone for 24 months) plus the cost of airtime.
Unfortunately, it is a single example and the exact split between the cost of the phone and the cost of the voice/text/data package depends on the duration of the contract, the phone and the actual package.