The Benefits of SIM Only Contracts

With the mobile phone market focused predominantly on technological developments in handsets, good value is often overlooked with regard to tariffs. This is inevitably due to the extra cost of these cutting edge handsets which is built into the monthly line rental figure when signing up for a contract mobile. Our desire to take high quality pictures, access the internet on the move and even use our phone for GPS navigation has in many respects diminished the centrality of actual telecommunication to our buying decision process. It is by no means a bad thing that mobile phones now serve as portable, multifunctional devices to cater to our entertainment, navigation and web sourced information needs, but does impact heavily on the perceived cost of making phone calls.

With this in mind, and also the fact that people very often get quite attached to their current handset once the initial contract has expired, all major UK networks now offer 'SIM Only' contracts in addition to their standard packages. A SIM only contract boasts the benefits of a standard phone contract: inclusive texts, cross network minutes and often an internet browsing allowance, but comes in at around half the price, as the subscriber isn't paying for the handset: just their usage. In addition to the lower price resulting from the absence of payment for a new phone itself, the majority of SIM only contracts are established on a month by month basis, as opposed to the now industry standard duration of 12, 18 or even 24 months for a conventional contract. This means that the user isn't tied into paying the same set rate for a long period of time and can end the agreement with just a few weeks notice.

It is a relatively common occurrence that an individual will enter a lengthy phone contract on a high tariff and lose or severely damage their handset within a matter of months. If the unfortunate person doesn't have insurance or enough disposable income to outlay hundreds of pounds for a replacement, they will often have to buy a lower specification handset and run out the remainder of the agreed contract with an inferior model, paying a premium price. Obviously in this scenario the user is to blame through either negligence or lack of foresight, but it seems unjust that they are legally obliged to carry on paying for an item they are no longer in possession of. With a SIM only contract this situation can be avoided, or at least the blow minimised as there is no requirement to continue paying for the existing contract unless decided by the user.

SIM only contracts not only allow those who simply want a phone for communication purposes to avoid paying over the odds for the privilege, but also act as a useful temporary solution for the more technically savvy or image aware. If an individual's current contract is due to expire in a month's time, but the latest 'must-have' model is not due to be released for 3 months, then they are often presented with a dilemma: whether to extend their current contract and get the desired handset a few months after release or switch to a costly pay as you go option while waiting for the desired model's release. A SIM only contract is ideal for bridging the gap, as not only is it more economical than using a pay as you go SIM, but allows the user to carry on using their original phone number and can be cancelled in time to get the desired new handset on the day of launch.

The benefits of a SIM only contract are multitudinous and appeal across the entire spectrum of phone user demographics. With their lower price and increased flexibility compared to conventional phone contracts and improved functionality and better value than pay as you go options they may very well be the future of mobile communication options: granting the end user ultimate control over their handset and tariff. As this form of contract is now widely available across all the major networks, with a little research great deals are to be found, and if a better offer comes along, the user is free to switch with only 30 days notice. Sometimes the simplest option really is the most effective.

Published Friday, January 22, 2010

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