New Mobile Phone Business Model

UK mobile phone contracts are pretty unfair:

• You get a mobile phone contract. With this you get a phone handset. Whether you pay something toward it or not, the network whom you connect to absorbs most of the cost.
• You pay high line rental and call charges to allow the network to recoup the cost of the phone.
• If you bring your own phone, you still have to pay the high call charges.
• Therefore people are forced to upgrade their phone every year and pay for it whether they want to or not.
• Pay-as-you-go seems fair, but actually the call charges are high as the phone is still subsidised.

A new network business model which offers extremely cheap rates and no line rental to users who supply their own handset will slowly but surely overtake 'traditional' businesses and their pricing models.