What does 'phone cost' mean under tariff?

[Anonymous]

I'm browsing tariffs trying to work out what phones I'll have the option of when I come to upgrade, but am finding the site a little confusing.

Where it says 'phone cost' on the list of tarriffs, I had assumed that this was the value of phone you could get with that tariff, but then I noticed that the cheaper the tariff, the higher the 'phone cost' so it must mean something else, I just don't know what.

Also what does it mean when it says a phone is 'free to £399'? When is it free? When is it £399? I don't understand any of this :s

[jonsie · Accepted solution]

Phone cost is the upfront fee you have to pay for it. As you summise, the higher the monthly tariff you bare prepared to pay, the less the cost of your phone to you as O2 subsideise the phone and build in the retail price to your tariff.

[Anonymous]

Thanks, so if a tarriff has phone cost say £150, how do you know what phones you can get for £150?

Some phones say 'free to all tariffs' which makes sense, but where a phone is 'free to £399' and the tarrif has phone cost £150 (hypothetical, i can't remember which tariff I'm on), how much would that phone cost?

[perksie]

It's quite simple, you choose the phone you want then according to how many minutes etc you want you choose the tariff.

The dearer the tariff the cheaper the phone as a rule.