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Sim Only Contract

New products constantly hit the market and it can be difficult to keep up with the new jargon.  If you have heard of SIM Only Contracts but have yet to understand what that means you have come to the right place.  SIM Only is a 30 day rolling contract that many of the United Kingdom mobile networks are offering to consumers.  Basically what it means is that you can keep your existing phone and phone number, yet switch providers if you want to.

Sim Only Mobile Contracts

Let’s take a look at how a normal contract works.  When you sign up at O2, T- Mobile, Vodafone, or Virgin Mobile for a regular contract you are usually signing a contract for 12 to 18 months.  Some even ask that you have the contract for two years.  Much of the time this works well for you. You pay certain fees, have a monthly payment, and a set amount of minutes, but what if you want a new phone or you know you will be moving to a different service area where one of these companies does not reach?  There are many reasons a year or two year contract might scare you.  For those who do not want to be locked into a contract with one company for a year there is the new SIM Only Contract.

SIM Only Contracts as mentioned are typically 30 day agreements.  This means you do not have to stay with the same company for a year, but instead just thirty days.  You also do not have to worry about buying a new phone or remembering a new phone number.  You get to take those with you.  With SIM Only Contracts you are getting more minutes and texts at a lower monthly cost because you are not being charged for the line rental.  There is also no recover cost on the mobile phone.  You own the phone.

The reason this is called SIM Only Contract is due to the phone.  In every phone there is a SIM card.  This card has the information needed to make it work and connect to the mobile phone network.  It is also the signature that the phone company tracks your calls with.  So in a SIM Only Contract you will replace the SIM card in your phone when you decide to change service providers.

If you have a mobile phone you are happy with and just do not want to be committed to a long term contract you can use the SIM Only Contract option.  What happens if you are not happy with your current phone?  That’s an easy one to answer.  With the SIM Only Contract you have a flexible commitment that means you can upgrade your phone any time you want.

For example say you know a new iPhone is going to hit the market, but it will take another two months.  You can do a SIM Only Contract for two months until the new mobile phone comes on the market.  Then you can upgrade your phone.  At that time you might decide a year contract is what you want or you can stay with the SIM Only Contract option.

 

At the moment T- Mobile, O2, Orange, Vodafone, and Virgin Mobile are the only companies offering SIM Only Contracts.

The benefits of the SIM Only Contract are as follows: