Because voice and text dosen't cost them much to maintain compared to that monthly charge, let along getting even more money via data, phone insurance, and other charges they can get the customer into. Thus allowing the subsidising the call of the phone. After 2 years I'm sure they will make a healthy profit per customer on the monthly charge alone.
Also mobile telecoms is rather competitive in the UK with each provider trying to get and especially hold on to as many customers as possible, hence the longer and longer contract deals.
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Because voice and text dosen't cost them much to maintain compared to that monthly charge, let along getting even more money via data, phone insurance, and other charges they can get the customer into. Thus allowing the subsidising the call of the phone. After 2 years I'm sure they will make a healthy profit per customer on the monthly charge alone.
Also mobile telecoms is rather competitive in the UK with each provider trying to get and especially hold on to as many customers as possible, hence the longer and longer contract deals.