Before you choose a 12 months free line rental contract you might wonder why these deals exist in the first place. It doesn’t seem to make much sense for the retailer to give you back your money. While this isn’t a reason to avoid them it might make you suspicious. Here are the main reasons why a retailer of a mobile phone is willing to pay you back your first 12 months line rental.

1. They need to provide an incentive for you to buy through them. You’re probably already aware of the huge number of retailers of mobile phones. From Carphone Warehouse to Phones4U the market for selling phones is very competitive. This is why retailers will offer incentives such as free line rental to get you to use them rather than their competitors. This is a great thing for the average mobile phone user as it means you can get more for your money.
2. The retailers can’t change the terms of the contract. The easiest way to get you to buy a contract through them would be for the retailer to offer a cheaper contract. Unfortunately for them, the mobile phone providers won’t let this happen. That means that they have to find another way of creating a more attractive deal such as providing a free gift or giving free line rental.
3. They want to create a good brand reputation. This is a less direct reason but is still important. If they can offer you the best deal then the retailers know you’ll recommend them to other people. This can create a lot of business and profit for the company and hence is something that they actively pursue.

As you can see, free line rental deals do make financial sense for the retailer. Not only that, but they provide a great opportunity for anyone looking for a new phone. Don’t be drawn in by the extras though – the most important thing is getting the right basic contract for you.