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SIM Only vs. Phone Contract: Which to Choose?

Posted In Home Technology & Gadgets - By Techtiplib on Thursday, October 12th, 2017 With No Comments »

Choosing a new plan can feel ever so complicated. When you procure a new handset, there are limited categories of plans available for acquisition, namely you can either; Sign up to a contract on the purchase of a handset, or buy a phone, get a SIM contract option and secure it in. But which choice is best? 

Cheap DataSIM

SIM-only vs. Contract plans – What’s the Difference?

A SIM-only plan as the name suggests, covers only your mobile service, in basic terms you are just paying for the outright use of the SIM. Lots of people readily prefer the outright purchase of their phone, and then sign up to a SIM-only plan to get a mobile tariff subscription. Ideally, it’s a lot less to pay per month, but somewhat a lot more to pay initially.

With a pay monthly mobile contract, on the other hand, you are set to pay a fixed fee monthly, usually for 24 months. There is very little, if anything, that you are required to pay upfront on sign up, but your monthly bill accumulated is set to include both payments, on your handset, and your mobile tariff expenditures.

So, which should you choose?

Pros of SIM-only

It generally works out to be a cheaper option conclusively 

Monthly bills incurred are overly lower 

It calls for even less commitment – you are not locked into a substantiated plan of two years, and furthermore, you gain more freedom, in that you ultimately gain liberty over when you can change your phone.

You also get an unlocked handset with autonomy to choose whichever network you fancy

Additionally, you can sign up on the plan without extensive scrutiny such as a credit check

Irrefutably, SIM-only plan is the only way to get subscribed to pay-as-you-go plan

Pros of Mobile Contracts

• There is very little pay if any upfront – you even stand to get contracts with a ‘free’ phone

• Fancy getting the phone of your dreams, with mobile contracts, you stand a chance to get your dream phone right away. Without having to save up money beforehand. Meaning that you can have the phone of your dreams, the best of the best, in your hands on the double

• Costs incurred through this process are more manageable, owing to that it’s all spread out

• If you arise to land on a good deal, conclusively analysis points to that, it is not that much more expensive in comparison to buying outright, with a SIM-only subscription.

• Sticking with Contracts translates to that you can acquire a brand new phone in every two year


e Maths behind it all

Here is an example to illuminate of the price discrepancy between selecting a contract and opting for a SIM-only plan. 

Let’s say you want a 64GB iPhone 8, and you also are a heavy user in need of a lot of data. You can get that outright from Vodafone – for instance, a plan with 16GB data, plus unlimited texts and minutes, at the cost of £60 per month, plus £20 upfront. Over the whole period of your contract, the total cost incurred will amount to £1460.

On the other hand, if you went ahead and bought the iPhone 8 outright, and with an inclination to a SIM-only plan. On Apple’s official website, the smartphone is listed at price tag of £699; and a SIM-only plan from Vodafone with similar allowances as above costs around £20 per month. Your total incurable cost in two years, in this case, would be £1179

That is a difference of about £281 – quite a lot truly, but ideally you may decide it’s worth owing to the benefit or features; a contract would bring to the table over a subtle duration of 2 (two) years.

What it ultimately boils down to is this: to candidly save money, a SIM-only plan is most attractive. On the other hand to get the phone you want right now, as well as, with little pay upfront; then go Contract.

Author Bio:

Simon Hopes is a renowned author, who writes articles and blogs so that modern-day users could know the advantages of SIM cards and mobile contract. While both the options are quite popular, one needs to choose, in accordance with their needs and convenience.

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