The maximum contract length networks can now offer is 24 months. Previously there had been 36 month contracts available but these must now be withdrawn. From a networks point of view a longer contract means more months to recoup the cost of the initial handset. This allows them to offer better phones on longer contract deals.

From a consumers view a longer contract means being tied in to potentially obsolete hardware for a long period. As mobiles evolve and become more powerful the desire to change phones for the latest features is strong. Taking out a shorter contract keeps your options open and means you can also take advantage of deals and offers when they are made available by the networks.

For business customers some tariffs offer mid-term upgrades. This means that after 12 months of a 24 month contract new handsets can be obtained. Depending upon how much the business is spending will determine how much subsidy there is for new handsets. You can then choose to upgrade some or all of the handsets in return for extending your contract by a further year.

Networks are also being forced to bring back 12 month contracts. However the offers available on these very short contracts may not be too attractive if you're looking for the latest SmartPhones.

When looking at buying a new mobile on contract always try to balance usage with contract length and handset price. As an example look at the 2 options below:

1. 24 month contract. £20 per month. 500 minutes. 100 texts. 500MB of data. Handset FREE.

2. 18 month contract. £25 per month. 600 minutes. 250 texts. 1GB of data. Handset £50.

Taking out option 1 will give you your new mobile free of charge. However the total cost is £480 and you are tied in for 2 years. With the second option you have to pay £50 up front, however the total cost across the life of the contract is just a little higher at £500 and in return you get more minutes/texts/data and a new phone 6 months earlier. Which works best for you?

These are fairly similar tariffs, meaning that the differentials are fairly small. For a low user, perhaps 100 minutes a month, the difference between a 100 minute tariff and a 500 minute one can be more substantial and going for a higher tariff with a lot of wasted minutes in order to get a phone free is not likely to work out as cost effective when the total costs of the contracts are compared.

For business mobile customers we do the comparisons for you, ensuring you get the best balance between hardware, tariff and contract term. This is done across all of the major business networks.