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.

In world of cell phones, there are accessories that are practical, they aid in safe operation of phone or allow you to carry phone safely. Some are there if you want them like downloadable ring tones. I have broken accessories down into groups to make it easier to describe them.

There are operational accessories. These accessories include battery chargers. Bear in mind these chargers are often phone and model specific so that they are not interchangeable. There are hands free kits that are easily installed in your vehicle. These enable you to talk on phone and keep both hands on wheel. There are antenna boosters that help to strengthen signal between your phone and its cell tower. These are particularly good in areas where cell phone signals are not strong. Batteries are available for your cell phone but they are made specifically for your model and manufacturer of cell phones. An attachment is available to attach to your phone that will add some time on your battery when its low until you can get it charged again. There are speaker phone kits. These are attachments for your cell phone that allow you to talk on phone without holding your handset in one hand and trying to control your vehicle with other. There are a variety of dashboard mountable holders that can be placed within arms reach.