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Join the club. Do not ignore it Vodafone has become the latest UK operator to jump onto the handset leasing bandwagon, with its new Vodafone Red Hot tariff. Similar to O2 Lease , which launched late last year, the scheme allows customers to rent top-of-the-line handsets for a term of 12 months, at the end of which they return the phone, swap it for the latest model and take out a new contract. Also like O2 Lease, Vodafone Red Hot comes with insurance bundled into the monthly price, which is key, since customers returning a damaged handset at the end of the contract will be charged a fee.
Vodafone will, of course, be hoping that Red Hot does better than O2 Lease, which launched to some fanfare and then quietly disappeared into the wasteland of business-only offerings.
Some features of Red Hot seem more encouraging at first glance, however. But Vodafone, like its competitors , is trying to decouple ever-increasing handset costs from service plans; its options are either rental schemes, like Vodafone Red Hot, or financing schemes similar to what it introduced in Spain.
Vodafone to sell 'nearly new' smartphones for 40% less
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