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View Full Version : Is the future sim-only?



@NickyColman
26th July 2009, 04:46 PM
Over recent months all of the networks have realised the potential of sim-only contract deals, usually lasting 1 month only in length.

In the last few weeks though, it seems the major networks are really upping the stakes by offering FANTASTIC value deals with near-unlimited allowances rapidly approaching the £10 a month price bracket.

But how long can the networks sustain this type of give away for? Are sim-only deals here to stay? Or are they just a flash in the pan? Will it be soon the norm to buy your phone and sim completely seperate? Or are handset & sim deals of yesterday still safe?

Hands0n
26th July 2009, 05:28 PM
I certainly like the notion of having a SIM-only option with 1-month contractual obligation. It certainly widens the availability of choice, and may even bring in those with less disposable income.

The cynic in me says that these SIM-only deals are revenue assurance. It is a means of getting that £10 regularly each month rather than the more hit-and-miss approach of PAYG. For example, I have two PAYG SIMs with £10 topped up that have been in that state for very many months. Far better for the mobile operators if that £10 came along each and every month.

The "better value" associated with SIM-only may just be the mobile operators being a bit more honest, or being allowed to be a bit more flexible in what they can offer for that regular £10 than they can with the more haphazard income from PAYG.

I would not like to see SIM-only displace the long-term contract and its associated subsidised handset. Although I would like to see all mobile operators take a leave out of Vodafone and O2's books can supply all contract handsets without SP lock. The handsets have, after all, been fully paid for.

My thinking is that the operators will run SIM-only alongside Contract. Each has its own merits.

Ben
26th July 2009, 07:40 PM
I think the popularity of SIM-Only has a lot to do with the vast numbers of handsets being sold that are being replaced/upgraded before their end of life. PAYG is inconvenient and, often, poor value, so one-month rolling contracts are a good option for the heaps of handsets out there that are no longer part of a subsidised contract.

Smartphones, on the other hand, will increasingly benefit from being purchased on special tariffs that provide all of the features and integration that can really make those devices sing.

gorilla
27th July 2009, 11:14 AM
It's my intention to go onto a sim only plan once my iPhone contract runs out in January. I hope they are here to stay, they are good value and offer flexibility.