The Rising Popularity Of Sim-Only Plans: Why Consumers Are Making The Switch

Pay as you go (PAYG), contract or SIM-only — it can be difficult to know which option is right for you. Data from Go.Compare’s mobile phone comparison service has revealed that during 2023, SIM-only contracts were up by 25 per cent, compared to contracts that include a handset. But why is SIM-only becoming an increasingly popular option? In this article, SIM-only mobile provider spusu, explores four reasons why SIM-only contracts are becoming more popular.

In the wake of the cost-of-living crisis, there’s been a shift. People are now more conscious on what their monthly outgoings look like, and are instead turning to SIM-only plans, which don’t include the cost of the handset. But there are more benefits to going SIM-only that are influencing the surge in popularity.

Cost savings

Firstly, the price of SIM-only contracts is undoubtedly the most attractive benefit. As SIM-only plans do not include the cost of the handset, they are significantly cheaper compared to device contracts. By only paying for the SIM card and the services provided by the network provider, such as data, minutes and texts, consumers can enjoy huge monthly cost savings.

Flexibility and control

We’re human, we’re allowed to change our minds. But if we commit to a three-year handset contract, and we’re not happy, there’s not much we can do without facing a costly penalty.

Ranging from one-month rolling contracts, to twelve-month contracts and longer, SIM-only plans offer greater flexibility by allowing customers to switch providers or plans without being tied to a lengthy contract. This is particularly useful for consumers who want more control over their monthly outgoings and how much they are spending. This flexibility also enables customers to easily switch between providers to find the best deal or to take advantage of special offers and promotions.

Reducing electronic waste

How many of us would be guilty of hoarding our old phones? Well, it turns our quite a few of us. A study from Compare and Recycle in collaboration with YouGov found that 60 per cent of Brits have upgraded their mobile phones at least three times in the past ten years, with 40 per cent keeping their old devices.

Handset contracts often mean that as soon as the duration is up, the phone gets swapped for something more flashy, even when the current device is still as good as new — contributing to the growing electronic waste in UK households.

With a SIM-only contract, users can keep their same device, which in today’s more environmentally aware society, is a more sustainable option for those who are conscious of electronic waste.

Increased competition

The rise of Mobile Virtual Network Operators (MVNOs) has increased competition among mobile providers, and contributes to why SIM-only plans have become more prevalent in the market. These providers often offer competitive pricing and attractive perks, helping to drive the popularity of SIM-only plans. This includes spusu, which offers SIM-only plans starting from £9.90 per month, with a price freeze on all its plans until 2026.

Whether or not a SIM-only plan appeals is dependent on the user’s preference, but there’s no denying the benefits that a SIM-only plan brings. From cost savings and greater control to competitive prices and reducing electronic waste, the uptake of SIM-only plans are on this rise and it’s easy to see why.