The cell phones of tomorrow are so compact that you’ll need a beeper just to find where you left them. Current phones are incredibly tiny but they are going to get even smaller. You’ll be able to purchase a watch with cell phone and all you’ll have is a headset to talk with. Of course it will be all voice activated. The phones that are simply a tiny screen with wireless headset are also on horizon.

The cellular market believes that if pricing is right, you’ll throw away old dial up systems and use cellular for you home communications as well as your mobile communications. That’s why a company is in process of developing a very futuristic full size handset that will plug into your cell. Perfect for those long at home conversations.

I know your thinking, well that’s nice but that’s not so far out. ButWait! There’s more great news.

Your cell phone is going to be your garage door opener and your universal remote for your TV. Yes that’s right! Kind of like one stop shopping. It’s also going to work as a remote car start on new vehicles equipped with technology. So let’s see. You’ll be able to turn on TV for your morning update, start your car to warm in middle of winter, and then drive on off to work, all while talking to your pal. Now that’s pretty impressive!

So how can dealers make these seemingly crazy offers? First, you need to understand how dealer gets paid and how mobile phone industry works (just a little bit). The dealer gets paid by network, based on what price plan (tariff) he connects customer to; a higher price plan means more money for dealer.

Dealer Profit

Then dealer must pay for cost of phone. A high quality and expensive phone means less profit for dealer. The difference between tariff commission and cost of phone gives dealers gross profit.

However, dealer must then pay any cashback money from this remaining commission. The dealer basically is 'betting' on how many customers will claim their cashback money after stated 6th/12th month (or as given); lower percentage of customers that claim, higher dealers profits. The higher percentage claiming, closer dealer comes to going bust!

It is a fact that many are actually offering deals to customers that do not make them any money at all, and may make a loss. So how can they make this work?

Retailer goes bust without paying customer

The worrying problem is that some do not make it work, and have gone bust. Less reputable and unstable companies have not got balance right and had to pay out so much cashback that they simply do not have money in their coffers to pay, and have closed shop leaving customer without their cashback money.

In 2004 Mobile Republic went into administration allegedly for this very reason, and left many customers without their cashback.