Online retailers such as Dial-a-Phone with their aggressive mobile offers led the market in the late 90’s with strong deals that not only gave the customer a free phone but also discounted line rental or a free gift.

The problem this has caused is that many customers in the UK don’t appreciate or understand the value of their mobile phone. The UK mobile market is quite unique with networks and retailers heavily subsiding the price of the mobile phone for the consumer. Looking into Europe and other countries and it’s completely different with many customers in these overseas countries having to pay for the handset the majority of the time. The thought of receiving a free mobile phone is unheard of!

Whilst overseas consumers continue to buy mobile phones at a price, the UK market may start to change as it begins to mature and slowdown. Does this mean the end of free mobile phones on a contract? Well quite possibly, with networks no longer willing to pay retailers large commissions for re-selling their tariffs it’s becoming increasingly difficult for the high street and online retailers to subsidise the cost of the handset.

Many of the new top-spec and high-cost mobile phones are no longer available for free; the Nokia N95 has been one example of consumers finding it difficult to get hold of on a contract for free unless they were willing to take out a high priced monthly line rental deal.

Perhaps UK customers have had it too good for too long! Only time will tell whether the end of the free mobile phone is creeping up on us.