The world is slowly but steadily embracing the penetration of modern technology particularly when it comes to communication using smartphones and other mobile devices. This fact is clearly evident in the growing volumes of new mobile contracts and the rise in the sales figures for handset dealers. Mobile phone users usually have the choice to go with either a SIM-only contract or a handset contract and you will be presented with the same choice once you decide that it is time to buy a new mobile phone.

Both of the two options described above have their own advantages and disadvantages and any choice between the two should be based on an evaluation of which one works best for you. In a handset contract, buyers sign up with the service providers for fixed deals over a limited time period. In the deal the customers get new phones which are locked to the service providers SIM cards and are free to use both of them during the life of the contract. They will typically be required to pay a fixed monthly bill to cover the costs of the handset they received as well as their service consumption. On the other hand, customers who opt to go for a SIM-only contract can buy their handsets directly from retailers and then choose a service provider from whom to buy the SIM card. This is a Pay-As-You-Go arrangement in which the customers only pay for what they consume, usually prior to using the SIM services.

If your main objective is to get the best deal that saves you the largest amount of money then you need to closely review each deal before deciding which one is best for you. Below is a brief analysis of the two options that should help you in making that decision.

SIM only contracts

With a SIM only contract subscribers are able to enjoy the following;

– Lower overall costs; for starters, since this is a pay as you plan customers only have to pay for what they use and so there is no danger of spending more than you actually have. In addition, a quick comparison of the total costs involved in, say, a two year period, will most likely be lower for customers who have a SIM only deal than for those with full contracts.

– Flexibility; customers who choose to opt for SIM only contracts usually buy unlocked phones. That means that they are free to use any SIM card of their choice without being held back by any contracts. As such, they are free to compare plans from different service providers and then go for one that fits into their budgets. Plus, if they should ever feel dissatisfied for one reason or another with their current plans or tariffs then they can easily shift to new mobile service providers or mobile carriers at a short moment’s notice.

As mentioned earlier, choosing to go for SIM only deals is not entirely without its share of disadvantages and the most significant of these include the following;

– Higher initial cost; since you are going to have to buy your handset separately, choosing this option will mean that you will have to pay the full price of the handset upfront.

– Limited support- the only contract between you and the mobile carrier is limited to the SIM card that you are using and not to the handset. You will have to pay for any repairs or upgrades to your handset from your own pocket.

– No credit checks; unlike contract deals, customers who opt for this option are not subjected to credit checks and this makes it ideal for customers with poor credit scores.

Contract phone deals

With a contract phone deal customers get to enjoy the following advantages;

– Low initial costs; most mobile carriers charge very little or no fees when signing a new contract with them making this option affordable in the short term.

– Convenience; customers can call and use their handset as much as they want without having to worry about loading their phones with cash in advance.

– Support; customers who have this type of contract are usually entitled to free repairs of their handsets provided the repairs fall within some prescribed parameters. Plus you can also get a replacement phone if you stick to the carrier for long enough.                                                                                                                                                                                                                                                                                                 

Some of the disadvantages of contract phone deals include;

– Higher long term costs

– Lack of flexibility

– Credit checks

Categories: General