With the increase of Mobile Network Data services and more sophisticated devices, particularly Smartphones and iPhone / Galaxy S3
, the replacement value of your mobile device may be far greater than you think.
When you purchased your mobile device from your Mobile Network Operator you may have only paid a nominal price for it. The reason being is that the Mobile Networks will subsidise your device, when you are signing into a lengthy contract.
If you are signed into a contract with your Mobile Network Operator, they will continue to bill you each month for the line rental, whether or not you still have the use of your mobile device. You will be liable for the monthly rental until the end of your contract.
In the event of your device being damaged or stolen, and if you do not have an insurance policy in place, you will have to replace your device at your own expense, your Mobile Network has no responsibility to replace your device free of charge.
You may assume that you are entitled to an upgrade from your Mobile Network Operator, however, nowadays, upgrades are usually only available on average every 12 - 18 months, and there is still a substantial cost involved.