I’m always on the outlook for cheap cellphones, considering how much I (and my wife and three teenagers who have lost a coule over the years) depend on them. But I got tired of getting ripped off by Orange, Pelephone, et al, not so much for the service, but for the old phones they try to pawn off on us, selling them for twice the price they retail for when new! As I wrote a couple of years ago, all you had to do was compare the web stores for the Israeli phone companies where they list the prices for their devices, and compare them to the prices you can buy them for unlocked on Amazon.

I even proved that it could pay for Israelis to order the phone; even after you pay the customs and the sales tax and shipping, the “full price” devices the Israeli companies are selling can be had from sites like Amazon for a third of the price! And when it comes to the “kosher” phones they market to the Chareid public, the Israeli cellphone companies outdo themselves; for their “mehadrin” lines, they take TEN year old analog phones (probably purchased for 2 cents on the dollar!) and sell them for even MORE than they charge for the latest 3G phones!

So, I took a conscious decision a couple of years ago – never again would I buy a phone from Orange (with whom I currently have my account). Instead, I order unlocked tri- or quad-band GSM phones from Amazon, to be brought back either by me or by friends. Comparing the prices, it made sense.

And, I was about to do the same thing this year, too. Finding myself in need of a cellphone, I checked out my favorite department on Amazon, and found that they were selling the wonderful Nokia 5800 MusicExpress for $299 – a bargain, considering its capabilities. Nokia fans had been touting this model as an “iPhone killer” (a title that now seems to have transferred to the N97), because it has a touch screen, plus all sorts of extra features even the iPhone 3G doesn’t have (video recording, expandable storage, and as many Symbian apps as the iPhone has for its platform).

Somehow, though, this week I found myself in an Orange store – where I saw their latest ads for the latest “deals” they were offering. Like a dog that’s been whipped one too many times, I of course looked the other way – but the salesperson was available and I had to wait around for something anyway. One of the deals showed a tiered pricing system on some devices – like, if you speak a certain number of minutes a month, you pay less for the device. Maybe there was a deal to be had. Who knew?

So I asked. I explained to the salesperson what my strategy was, and how I was going to save a ton of money buying a top of the line, relatively new phone directly and unlocked. He checked his computer and told me, “well, you speak about 200 minutes a month and pay X amount per month on that phone. So you’re a good candidate for a deal.” Yeah, but how good?

“How about this: I’ll give you the Nokia for 499, and a package for 18 months that will give you 200 minutes, 200 SMS messages,  3G internet (the device has wifi too), and I’ll even throw in two months of GPS free.” 499!?! But I told him I was paying 299.

It took me a couple of seconds (yes, I can be “slow”), but then it hit me. This is Israel! And he’s offering me a $299 phone for NIS 499 (in six interest-free payments) – which is about $140 at current exchange rates! Not to mention the 35% I am now saving on my actual phone use! And, to top it off, he threw four Orange painter caps into the bag with the phone (and we all know that we die for the cute “freebies” the cellphone companies give out!).

I’ve been checking the phone out, and it seems to work. I’ve also been searching all over for a “refurbished” sticker and I can’t find one. I mean, there must be a catch! Why would Orange be selling this phone so cheap (of course, they should really be giving these things away, like companies in the rest of the world do). The only issue I could find is that phones manufactured before February 2009 may have an issue with the earpiece getting loose. I haven’t been able to determine the manufacture date of this unit (logic would say that these discounted phones are leftover stock that had problems, but equal logic would say that it’s unlikely Orange or any retailer would have had such a large stock of phones left over from more than six months ago). However, if this is one of the problem phones, I’ve got a one year manufacturer’s warranty, so I’m covered there. Still scratching my head, though – what’s come over Orange to make them so “generous?”

(P.S.: This happy occurence does not make me more optimistic about the pricing structure for the iPhone when it finally comes out in Israel. I explain why here).