As a BBC report showed back in 2011, their study proved that "Mobile phone users [are] 'overpaying by £200' per year" (BBC News, 2011). Shocking figures show that the average consumer "spent £439 a year on their mobile phone". If you put this into perspective, considering the list of substitutes, this is a significant amount of money, especially when comparing prices on offer across UK retailers. Every day we're thrown new offers and deals in attempts to give us more minutes, texts and internet at a lower cost.
The signing up of mobile phone contracts vs pay as you go options is on the increase. However, the range of prices people pay is significant. There is certainly no norm for what we pay, one person could be spending over £50 per month simply to hold that brand new iPhone in their hands, while someone else receiving the exact same allowance could be paying under £10. Why? Because people rush and others are patient, people want the latest while people want the cheapest.
Today's topic focuses on the relatively new phenomenon of SIM only contracts, cutting out the very thing that pushes conventional mobile phone contracts right up into the higher figures for monthly payments: the handset. Only a fraction of what people pay goes towards their allowance, the majority covers the price of a brand new phone, and who wins overall? The retailer and/or network of course.
However, the SIM only deal cuts out this middle item, and as a result the huge savings are passed onto the consumer (to an extent). All you are receiving is a small piece of plastic, and a set of minutes, texts and internet data each month. All you are paying for is this, no handset, nothing else. This forces prices down, and as more competitors offer this new form of contract option, the prices are even lower.
Why else is this type of option advantageous to the consumer?
The retailers and networks can now shorten contract lengths with no handset price to cover. 30 day rolling contracts gives consumers higher flexibility of choice. One month they can pay for thousands of mins, texts and internet data, the next they can opt for a lower set of allowances and pay less.
Going away / not intending to use your phone? The shorter contract length means you can simply finish and sign off at the end of the month. No more paying she loads without using a single minute or text.
Keeping your last mobile phone number is easy. Port over from your last deal, whether contract or pay as you go in a matter of a day.
We are bombarded with new deals across networks, some new ones too, everyday. Holding a shorter SIM only contract means you can switch easily, lowering customer switching costs.
We are bombarded with new deals across networks, some new ones too, everyday. Holding a shorter SIM only contract means you can switch easily, lowering customer switching costs.
There's no doubt about it, things are looking up (and cheaper) for mobile phone consumers. The SIM only option has revolutionised the industry: more choice, less costs, more flexibility. Our recommendation? Be patient, look around, compare and save.
Compare SIM Only Deals is a good place to start.
Article Source: http://EzineArticles.com/?expert=Will_French
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