Forget complicated cashback schemes and shiny iPhone deals, here's one way to cut your mobile phone bill and get more minutes for your money...
For years, the mobile phone world divided itself into two camps. Those that took out a monthly contract, and those who didn't.
These days, deals come in all shapes and sizes, and you can get pay-as-you-go agreements with added extras, contracts which cap your talk-time and phones which give you cashback.
In addition to this plethora of mobile deals are SIM-only contracts, which attempt to bridge the gap between the contract haves and have-nots.
SIM-only deals started popping-up on the mobile phone radar at the start of the year, and allow you to take advantage of hundreds of extra minutes compared to traditional contract deals.
Another perk with these contracts is that they only require a 30-day commitment, as opposed to the 12 to 24 months traditional contracts tie you into. This means that not only are they cheaper and more value than a traditional deal, but more flexible too. You simply pop the SIM into your existing handset (providing it's compatible) and you'll be up and running almost immediately.
The only downside is that you need to be prepared to forfeit the pleasure of getting a shiny new handset with your new contract.
Good value?
So how do the SIM-only deals stack up? Here's a quick look at what the top five providers are offering at the moment:
Provider | £10 | £15 | £20 | £25 | £30 | £35 |
|---|---|---|---|---|---|---|
Virgin Mobile | 200 minutes, 200 texts | 150 minutes and 1,000 texts OR 300 minutes and 300 texts | 300 minutes and 2,000 texts OR 450 minutes and 450 texts | 600 minutes and 600 texts | 750 minutes and 750 texts | n/a |
n/a | 350 minutes and 650 texts | 600 minutes and unlimited texts | 800 minutes and unlimited texts | 1,400 minutes and unlimited texts | 1,800 minutes and unlimited texts | |
75 minutes, 500 texts | 250 minutes and 100 texts or 150 minutes and 1,000 texts plus free calls between you and three others. | 600 minutes and unlimited texts plus free calls between you and three others. | 700 minutes and 250 texts, plus free calls between you and three others and unlimited landline calls | n/a | n/a | |
150 minutes, 300 texts | 200 minutes and 400 texts, plus unlimited O2 to O2 calls | 600 minutes and 1,000 texts, plus free O2 bolt-on | n/a | 1,200 minutes and 1,000 texts plus free O2 bolt-on | n/a | |
Orange | n/a | 200 minutes and unlimited texts OR 300 minutes and 100 texts plus unlimited landline calls | 600 minutes and unlimited texts | 700 minutes and unlimited texts OR 800 minutes and 100 texts plus unlimited landline calls | 1,200 minutes plus 500 plus bonus of wither unlimited texts OR 250Mb of monthly internet browsing | n/a |
Admittedly, there's a lot going on in the table above, and what you get for your money varies widely between providers.
However, there is one column worth highlighting. In my opinion, the emergence of £10 SIM-only contracts make these deals even more attractive to those who use their phones more than a typical pay-as-you-go user, but aren't bothered about whether they get a new phone.
Three providers currently offer a £10 SIM-only tariff, and depending on how you use your phone, you could squeeze some great value out of these low-cost deals.
For example, Virgin's `Liberty SIM' package gives you 200 minutes and 200 texts, all for a tenner a month! The same amount of minutes and texts on the cheapest pay-as-you-go deal from Asda (8p a minute for calls and 4p per text) would cost £24.
And, if you're willing to shell out £5 more per month (so £15 a month), you can get 350 minutes and 650 texts with T-Mobile's Solo 15 tariff - one of the best deals on the market, in my opinion.
Keeping it in the family
Aside from free standard minutes, some mobile phone companies offer extra minutes to others on the same network to try to promote loyalty. Two networks in particular, Vodafone and O2 have jumped on this bandwagon and offer this on top of your standard minutes.
O2 pioneered the extras market with its free `bolt-ons', and on all `Simplicity' tariffs costing £15 or more you get a bonus with your deal. For example, if you know lots of people on O2, £15 a month is a great deal because it allows you unlimited O2 to O2 calls. Alternatively, on higher plans, you are free to choose from a range of bolt-ons, including unlimited texts, weekend calls, or 200 extra anytime minutes, all at no extra charge.
Vodafone has recently followed suit, and on SIM only tariffs from £15 you get free calls between you and three other people also on the Vodafone network at any time during the day (60 minutes per call).
Calculating the savings
If you want to see just how much you can save - or indeed gain by moving to a SIM only tariff, here's a comparison of the number of minutes you can get on a £30 a month contract with a Samsung Tocco versus what you get with SIM only:
Provider | Phone with 18 month contract | SIM-only |
|---|---|---|
Virgin Mobile | Virgin £30: 300 minutes and 1,500 texts OR 450 minutes and 450 texts. Phone cost: £19.99 | 750 minutes and 750 texts |
T-Mobile | Combi 30: 700 minutes and unlimited texts, plus free phone | 1,400 minutes and unlimited texts |
Vodafone | 700 minutes, 250 texts and unlimited landline calls OR 600 minutes and unlimited texts, plus free phone. | For £25 a month, you get 700 minutes and 250 texts, plus free calls between you and three others and unlimited landline calls |
O2 | Online 30: 400 minutes and 1,000 texts plus unlimited O2 to O2 calls. Phone cost: £129.99 | 1,200 minutes and 1,000 texts plus free O2 bolt-on. |
Orange | Dolphin or Racoon 35 (online deal): 600 minutes and unlimited texts, or 700 minutes, 100 texts and unlimited landline calls. Free phone. | 1,200 minutes plus 500 plus bonus of either unlimited texts or 250Mb of monthly internet browsing. |
As the table shows, by not taking a phone, you can potentially make some great savings. For example, with O2 you'd get triple the amount of minutes than a conventional contract, simply by going SIM-free.
Alternatively, if you have no need for the extra minutes, you can get the same amount of minutes as you would with a contract deal, but at a lower price.
For example, Orange's SIM-only Dolphin 20 tariff gives you the same amount of minutes and texts as you could get with an 18 month contract, plus a free phone, but you'll only have to fork out £20 a month - a saving of £180 over the contract term.
Obviously if you've got your eye on the latest expensive handset or smart phone, tying yourself into a contract will almost always work out cheaper than getting a SIM-only deal and buying your desired handset SIM-free (out of contract).
But, for those who don't need to own the flashiest gizmos, SIM only deals could cut your phone bill considerably, and are an alternative I'll definitely be considering once my current contract expires!
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