We’re currently witnessing a golden age in technology and with the ever-increasing popularity of smartphones and the brilliant features they’re complete with; it seems every mobile user in the country is either tied to a contract or on a SIM-only deal.
As a mobile customer, the market couldn’t be any better. There’s a huge array of mobile phones to choose from and you’ll be able to grab something to suit both your lifestyle and budget. Of course, in a sense this does make your decision tougher. However, it’s surely better to have these brilliant options at your disposal, rather than none at all.
It’s not just the handset itself you have to choose either. With fantastic brands available including Apple, Samsung, Nokia, Windows and LG, you’re sure to find something in meeting with your tastes and preferences. However, there are two options for owning the mobile phone – a contract and a SIM-only deal.
Mobile phone contracts: Choose your handset and term of contract. You’ll make instalments over a set period to pay off the cost of the phone, whilst having minutes, texts and data included in the package.
SIM-only contracts: Again, pick your desired handset – But this time you’ll buy the phone outright. You’ll then only need to pay a package for the minutes, texts and data you want.
There are two types of SIM-only deals:
Pay monthly SIM-only contracts
- These contracts are available on all SIM types
- You pay monthly for the contract and will need to pass a credit score
- Contracts are typically over a period of 12-24 months
- Choose the package with the right level of minutes, texts and data.
Pay as you go SIM-only contracts
- Only pay for the minutes, texts and data you use
- You won’t be tied into a fixed term.
What’s apparent in the industry though, is customers are typically paying a little more than they need to on a mobile phone contract. On average, you’re likely spending £92 more over the term of the contract and staggeringly, Britons are collectively wasting £355 million by not renegotiating their contract after the initial 24-month period.
This is crucial because the cost of a handset is incorporated into monthly payments. Therefore, you should have paid the handset off after 24 months and would be eligible for a huge discount on your fees after this. That is unless you’ll be choosing another handset and with it, another 24-month term.
As such, you should keep in mind when your contract is coming to an end and ensure to have your fees reduced when applicable. You can then move onto a SIM-only deal and there are some superb packages available that are very affordable. O2 is particularly good at separating the costs of the handset and the tariff, so once your contract comes to a conclusion you’ll be left paying only the ongoing tariff rate.
When your contract comes to an end you can also sell your old handset and grab another two-year deal on one of the latest and greatest smartphones. This cash can be used to put towards the new handset and surprisingly, you’ll still get a decent amount of money for the old mobile phone.
Mobile Contract vs SIM-only
Most customers tend to opt for a mobile contract as opposed to the SIM-only deals and it’s pretty easy to see why when considering the outlay needed to afford the handset. The better smartphones on the market are upwards of £600 a piece, which is a large amount needed to buy the handset outright. You should bear in mind though; some companies will help you with the upfront cost of the handset if you wish to go down this route. There are some flexible finance plans available, so we’d advise shopping around.
However, when it comes to the SIM-only contract, over a period of two years you will pay slightly less – so there’s a saving to be made. Of course, you’ll need to weigh up whether it’s better to save long term and pay the initial lump sum.
With SIM-only there’s also the benefit of having a completely unlocked mobile phone. This is great for those travelling a lot and needing to put in foreign SIM cards to avoid extra overseas costs and data charges.
At Aerial Direct we offer 24-month SIM-only contracts across the board and if you don’t take a handset, there’s the possibility of further discounts on line rental.
The benefits of a mobile phone contract:
- Spread the cost of the handset over 24 months
- Include minutes, texts and data usage in your contract
- Get a new mobile phone every two years
The benefits of a SIM-only contract:
- Tied into the network for as little as 30 days
- Enjoy an unlocked phone, suitable for any SIM
- Pay only for the minutes, texts and data you use
If your mobile phone has recently finished its contract or you’re considering a SIM-only deal, why not get in touch with Aerial Direct and find out what the best option is. We offer brilliant deals on a range of mobile phones and our team can run through the full range of possibilities.
Call us today on 0330 019 3658 and discover the best option for your next mobile phone.