The UK division of mobile operator Vodafone has launched a scheme whereby consumers are now able to access a sophisticated smartphone at a more modest pricing structure – through the company’s repackaging of used models that are still in good condition.

The scheme permits reductions both to those customers wishing to take out monthly contract payment plans as well as those who simply wish to make an up-front purchase and use their phone on a pay-as-you-go basis.

The phones passed on via the new payment reduction scheme are reported to be those which have been given back to Vodafone under the company’s seven-day return promise.

Vodafone is additionally reported to subject each returned phone to a series of quality control tests, together with a complete wipe of the record of the previous user’s activity.

To instil confidence in the quality of the repackaged phones, Vodafone is offering a minimum one-year warranty on all models.

Commenting on what the company has termed its ‘Nearly New’ scheme, a spokesperson from Vodafone is quoted as saying:

“Nearly New is designed to make it even more affordable for people, especially those who prefer pay as you go services, to get their hands on a smartphone and start using the mobile internet. It is part of our ambition to get the internet into the hands of our customers.”

Examples from the scheme include an iPhone 4 with 8GB capacity, priced at £250 – a reduction of £150 on the equivalent new model – and a monthly £33 plan offered for a Samsung Galaxy S III, with no down payment requirement.