Cellphone Contracts

Is the "Free" Phone on a Contract Really Free? How to Tell in South Africa

A phone with nothing to pay upfront is paid for in the monthly price. We worked out how much of each Telkom contract pays for the phone, checked the free second phones and double deals, and found the free extras that start charging.

Vulo29 October 20266 min read

There's no such thing as a free phone on a contract. If you pay nothing upfront, you pay for the phone in the monthly price, spread over 24 or 36 months. That doesn't make it a bad deal. On Telkom's current prices the contract usually charges less for the phone than buying it cash. The free second phones, double deals and streaming extras are worth checking more closely.

Telkom is the only network in our data whose catalogue prints a phone's cash price next to the contract, so it is the network we can check. We read its 7 October to 6 November 2026 catalogue on 28 October.

How a free phone is paid for

A contract's monthly price covers two things: the plan and the phone. To see the phone's share, take out what the same plan costs SIM-only:

  1. Contract total = monthly price x months, plus anything upfront.
  2. Plan total = the same plan's SIM-only price x the same months.
  3. What you pay for the phone = contract total minus plan total.

Compare that with the phone's cash price. If it is lower, the network is discounting the phone to sign you up. If it is higher, you are paying extra to spread the cost.

What Telkom's contracts charge for the phone

Telkom sells its FlexOn plans SIM-only too. Over 24 months that's R 3 576 for FlexOn 2 (R 149 a month), R 4 776 for FlexOn 4 and R 6 456 for FlexOn 6.

PhoneContract, 24 monthsPlan alonePaying for the phoneCash price
Samsung Galaxy A27R 8 856R 3 576R 5 280R 7 029
Samsung Galaxy A57R 15 336R 3 576R 11 760R 12 049
iPhone 16e 128GBR 15 096R 3 576R 11 520R 16 109
HUAWEI Pura80R 19 176R 3 576R 15 600R 20 979
iPhone 17 256GBR 28 056R 4 776R 23 280R 24 179
Samsung Galaxy Z Fold8 256GBR 52 776R 6 456R 46 320R 46 279

Across 47 phones, the 24-month contract charged less for the phone than its cash price for 46. The Fold8 256GB was the exception, by R 41. Over 36 months it was 40 of 47.

It hasn't always worked out this way. In 2017, price tracker Tariffic found a Vodacom Galaxy S8 deal that cost R 19 680 over the contract, against R 13 045 to buy the phone from Takealot. "There's no such thing as a 'free phone' when it comes to cellphone contracts," its CEO Antony Seeff told BusinessTech. Do the sum for the deal in front of you.

For the full comparison, including when buying cash wins, see buying a phone cash versus on contract.

The free second phone

Telkom's HUAWEI Pura 90s Pro and Pro Max deals come with a "FREE HUAWEI nova Y74S". Here the free phone holds up against Telkom's own prices:

Deal (FlexOn 4)Contract, 36 monthsPaying for the phonesTelkom's cash price
Pura 90s Pro + nova Y74SR 30 564R 23 400R 26 639
Pura 90s Pro Max + nova Y74SR 37 764R 30 600R 34 439

The contract charges less for both phones than the printed cash price of the deal. The catalogue prices the nova Y74S on its own at R 5 939.

Double deals: two phones, two prices

Telkom's "FlexOn 2 Double deals" offer to "get two devices". They cost about the same as two single contracts:

PhoneOne phone, per monthDouble deal, per monthDifference over 36 months
Samsung Galaxy A27R 289R 599R 756 more than two singles
HUAWEI nova Y74R 319R 669R 1 116 more than two singles
OPPO A6kR 349R 679R 684 less than two singles
HONOR X7eR 319R 629R 324 less than two singles

All prices are over 36 months. The OPPO and HONOR deals come with earbuds or a watch on both the single and the double. The catalogue doesn't say whether a double deal includes one plan or two, so ask before you sign. Either way, the second phone isn't free, and on the Galaxy A27 and nova Y74 two single contracts cost less.

Free extras that start charging

Some "free" parts of a deal are free only for a while:

  • Streaming. Telkom's catalogue says Prime Video Mobile Edition "for FlexOn 2 and FlexOn 4 is R29/month after the promotional period and will automatically be added to your Telkom bill". Amazon Prime is R 59 a month on the same terms. Many deals carry a "3 months on us" badge, and the PureFlex plans spell their offer out as three months. If yours is three months too, keeping Prime Video for the rest of a 24-month contract adds R 609, or R 1 239 for Amazon Prime. Cancel it if you don't want it.
  • Bonus data. The "50GB FREE bonus data" is "once-off and valid for 31 days from date of activation". It isn't 50GB a month.
  • Unlimited calls. The "Unlimited" Telkom-to-Telkom minutes on FlexOn plans are subject to a fair use policy of 3 000 minutes a month.
  • Accessories vouchers. Some deals come with a R 500 voucher, redeemable at dressyourtech.co.za. It's worth R 500 only if you'd buy accessories anyway.
  • Connection fee. The catalogue says a R 99 once-off SIM and connection fee applies, so a free phone still costs R 99 on day one.

What the advertising rules say

The Advertising Regulatory Board (ARB) has ruled against "free" claims that came with a cost. In 2025 it found that MTN's "free-to-use" Shesh@ 600 router was misleading, because a R 553 activation fee applied. As IOL reported, the ARB said a right to charge in the terms and conditions was not enough, and ordered MTN to remove or amend the advertising. In 2023 it found a rain advert misleading for promoting a R 1 joining fee without mentioning the R 599 monthly fee.

ARB rulings bind its members. If a "free" offer comes with a cost that was not made clear, you can complain to the ARB.

How to check any free phone deal

  1. Work out the contract total: monthly price x months, plus any upfront payment and fees.
  2. Find the same plan SIM-only on the same network and take its total over the same months away. What is left pays for the phone.
  3. Compare it with the phone's cash price. The network's own, or a shop's.
  4. List what stops being free: streaming, bonus data, insurance trials. Note what each costs after the promotional period.
  5. Check what happens at the end. The bill doesn't stop when the phone is paid off. See what happens when a phone contract ends.

Compare phone contracts on Vulo → · Compare SIM-only plans →


Sources. Telkom catalogue, edition "7 October - 6 November 2026" (telkom.co.za/catalogue.pdf), read on 28 October 2026, for every Telkom price, cash price and offer term above. "How much your 'free phone' actually costs on your new contract", BusinessTech, 7 August 2017, on Tariffic's study. "MTN South Africa faces backlash over misleading 'free' router advertising", Zelda Venter, IOL, 30 June 2025. "Rain's R1 advert found to be misleading", News24, 30 August 2023. The ARB reports are press accounts, not the full rulings. Totals are monthly price x months, with no interest, insurance or fees added. Prices change, so check them with the network before you sign.

Frequently asked questions

Is a free phone on contract really free?
No. A phone with nothing to pay upfront is paid for in the monthly price over 24 or 36 months. It can still be a good deal: on Telkom's October 2026 prices, the part of a 24-month contract that pays for the phone was less than Telkom's cash price for 46 of 47 phones.
How do I work out what I am paying for the phone?
Multiply the contract's monthly price by the months. Subtract what the same plan costs SIM-only over the same months. What is left is what the contract charges for the phone. Compare that with the phone's cash price. On Telkom's 24-month Galaxy A27 deal, R 8 856 minus R 3 576 for the plan leaves R 5 280 for a phone with a cash price of R 7 029.
Are Telkom's double deals two phones for the price of one?
No. In Telkom's October 2026 catalogue, a double deal costs about the same as two single contracts. Two Galaxy A27s are R 599 a month over 36 months, against R 289 for one. Two HUAWEI nova Y74s are R 669, against R 319 for one.
Do free extras on a contract stay free?
Not always. Telkom's catalogue says Prime Video Mobile Edition is R 29 a month after the promotional period on FlexOn 2 and FlexOn 4, and Amazon Prime is R 59 a month, and that both are added to your Telkom bill automatically. The 50GB of bonus data is once-off and lasts 31 days.
Can a network advertise something as free if there is a cost?
The Advertising Regulatory Board says no. In 2025 it ordered MTN to remove or amend advertising for a 'free-to-use' router that came with a R 553 activation fee, and found that a fee in the terms and conditions was not enough. The ARB's rulings bind its members.

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