How Exactly Do SIM Only Contracts Actually Work?

How Exactly Do SIM Only Contracts Actually Work?

It is very likely that you will have heard of SIM only contracts with in the mobile phone sector.  If you have, do you know what they actually entail?  If you want to know more about what they entail and why many people are choosing them over the other deals, then please read on.

For a long time since mobile phones became commonplace, there was only 2 avenues for getting your hands on one.  Pay As You Go Deals offered you the ability to buy a mobile handset that you wanted with a particular SIM card in the box, ready to be activated.  This was good for people who just wanted a phone that they could use within hours.  It also worked well for those who wanted to ensure that they only paid for what they actually used.

Contract deals were the option for the real gadget lover it seemed.  As the technology became more and more impressive and the higher end models topped wish lists of people around the world, contract deals offered people the chance to save money upfront on that handset of their dreams.  So you may get the handset for free or have to pay some money towards it, but generally it would be a great saving on the handset.  You then would have to pay a monthly premium.

This has many drawbacks as you still have to pay for your phone, whether you use it very little or not.  There is also the negative aspect that by the end of your contract length, you will have paid more for your handset and services than you would have if you had bought the handset outright on a PAYG deal or even better a SIM only contract.

Which brings us nicely on to SIM only deals.  These were introduced in April 2007 by mobile phone giants O2 and have proved successful and popular ever since.  They are basically the best of both worlds of having a contract phone and a PAYG.  But offer more flexibility and higher savings than both.  You buy a handset of your choice, you will have to pay the retail price, so this may prove expensive initially depending on what you are after.  Then you can order a free SIM from any of the top mobile network providers.

The deals generally can last from as little as 30 days to 2 years, so there is plenty of room to chop and change your deal and tariff as and when needed.  This method of purchasing a mobile phone eventually will save you money as you will only pay for what you want to pay and will always have the option to change what you want from your phone.  Also, the handset is yours to keep from the outset, so you can always exchange or sell when you are tired with that handset.

The increasing popularity of this type of deal means that companies rather than limiting these offers, will likely expand them to give customers more and more flexibility.  If you want to save money and want complete control over who deals with your mobile phone services any given month, then you should opt for SIM only contract phones.


About Social Zombie

Social media and online marketing freak! Also enjoy blogging and writing.

Posted on October 8, 2011, in mobile phone. Bookmark the permalink. Leave a comment.

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