More than 40% of people now have sim-only deals, saving them a significant amount of money compared to traditional bundled plans. As the market becomes increasingly competitive, consumers are reaping the benefits of flexible and affordable options.
More people are buying a secondhand phone, or holding on to their existing handset. Photograph: Gary Hider/Alamy
Understanding the Benefits of Sim-Only Deals
Research from the tech analyst CCS Insight shows that more than 40% of people now have sim-only deals – more than have traditional bundled deals or pay-as-you-go plans. A decade ago, sim-only deals were far less prevalent, it says.
A sim-only deal is a mobile phone plan that provides access to cellular network services without the need for a physical smartphone.
These plans typically offer data, voice, and text services at a lower cost compared to traditional smartphone contracts.
Users can bring their own device or use an older phone with the plan.
Sim-only deals often appeal to those who want to save money on their mobile bill, have multiple devices to connect, or prefer a more flexible contract.
In 2024, 4.4m new phones were sold sim-free in the UK because more customers are buying phones from non-carrier channels such as direct from the manufacturer, like Apple or Samsung. Moving to a sim-only deal allows consumers to save a significant amount of money as they don’t have to pay off the value of the bundled device.
Sim-only deals offer a cost-effective alternative to traditional phone contracts.
By separating the phone and data plans, consumers can save up to 50% on their monthly bills.
According to a survey, 75% of mobile users prefer sim-only plans for their flexibility and affordability.
With no need to upgrade or replace phones frequently, customers can allocate their savings towards other essential expenses.
Why You Should Change
Although it has been the norm in the past, people are realising that buying a mobile phone and the contract for minutes and data allowance together does not usually make the best sense. As you are tied to a contract for up to two years, you are restricted when it comes to moving to a better deal, and you can be paying off the handset for three years.
At the time of writing, Vodafone was offering an iPhone 16 Pro as part of a bundle with 5GB of data and unlimited calls and texts for £37 a month. But after the cost of the phone is taken away, the usage fees were £13 a month. A sim-only deal with the telecoms firm Lebara, with similar allowances, cost £1 a month for the first seven months and £4.90 after that.
More Players, More Value
There are more providers in the market for people to choose from, thanks to so-called mobile virtual network operators (MVNOs): these are third-party companies that offer services via deals with the biggest operators. Companies such as iD Mobile, giffgaff, Lycamobile and Tesco Mobile all operate on the infrastructure of the main networks such as Vodafone and O2.
These smaller players are eclipsing the bigger ones in terms of flexibility and customer service as well as price, according to a survey by the consumer group Which?. Smarty, which does not offer handsets or fixed-term contracts, came out top, followed by Voxi and Talkmobile.
How to Switch
Check if you are still in contract by texting “INFO” to 85075. If there are early exit fees, it will probably be sensible to wait until the end of the contract before switching.
If you are in a “split contract” deal, where the data and phone contracts end at different times, know when the usage deal finishes so that you can have the freedom to move.
Not everyone can afford to simply shell out for a new phone when they need or want one, but there are other options apart from buying via a bundled agreement. Some retailers such as Apple offer interest-free finance on repayments, and there is the possibility of using a 0% credit card. Avoid contracts that charge interest.
Mobile manufacturers offer various affordable phone options with features like budget-friendly pricing, long battery life, and high-quality cameras.
Brands such as Xiaomi, Samsung, and Motorola provide a range of devices catering to different needs and budgets.
Additionally, refurbished phones and second-hand marketplaces can also be viable options for those seeking affordable alternatives.
According to a report, the global sales of affordable smartphones reached 1.3 billion units in 2022, indicating a growing demand for budget-friendly mobile devices.
If you switch, you can keep your old mobile number by texting “PAC” to 65075 for free. You will get a PAC code which can then be given to the new provider.
- theguardian.com | Be a sim only saver: could you join the phone users shunning bundles?
