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Unlimited minutes, unlimited texts for £14.50 per month with a free smartphone

Carphone Warehouse promises to give you up to £300 Cashback on all Pay Monthly Smartphones but more often than not you’re better off with an alternative deal.

Although there’s one which actually delivers value for money. The retailer sells the LG Optimus L3 on a two year contract with O2 for £27 per month. That’s a total cost of ownership of £648.

But you do get an automatic £300 cashback (roughly equivalent to paying nothing for 11 months), which brings it down to £348 (that’s £14.50 per month net). You get unlimited minutes, unlimited texts and 1GB of data allowance (plus O2 Priority Sports and O2 Priority Moments).

Shockingly enough, the equivalent SIM only deal from Carphone Warehouse with a 12 month contract costs MORE at £21 (down to £16 even when factoring a £60 cashback) while the phone itself costs £50 on PAYG. Arguably, we wouldn’t normally buy this contract for the phone which is an entry level handset.

We reviewed that LG Optimus L3 last year so head over here to find out more. In a nutshell, it is powered by a 800MHz single core SoC, has a 3-megapixel camera, a 3.2in 240 x 320 pixel resolution, Wi-Fi, GPS, no front facing camera and uses Android 2.3.6 Gingerbread.