so i will try to answer that here:

1. with free mobile phone deals, it’s really free for the customers if they claim their cash back on time. if they don’t, money goes to the mobile phone outlets that are providing the phones and the contracts

2. with the free mobile phone deals, the customers still have to pay their monthly bills, they cannot claim any of their cash back normally until the third contract month and they cannot claim it back all at once, which gives the mobile phone outlets the time to get hold of the cash using it to make some investments or simply put it in the bank for the interests.

3. the mobile phone outlets don’t only do free mobile phone deals, they have got many other phone plans as well.

4. why are you guys worrying for? it’s not like it’s your company….just enjoy the cash back mobile phones while they last!

But i really can’t see how are they making a profit with this kind of services, cause id doubt to many forget to claim back 400 pounds at the end of the period mentioned in the contract. At least i wouldn’t… Or maybe people in UK don’t read their contracts?

i can see what you mean there, John, and I know people who sign up multiple phone deals; they sell the new mobile phones while using the 12-month line rentals with their old phones

let’s say, you sign up 4 phone deals and you get 4 new mobile phones, sell them for 100 pound each. you get 400 pounds in profit on condition that you can claim your cash back in time

i wouldn’t recommend this as many of us are not well organized.

Therefore, you have to pay extra attention to your contract and make sure you claim your cashback in time.