The sim-ple way to pay less

The sim-ple way to pay less

Are you fed up with paying your mobile phone company a small fortune each month? Or perhaps you just want cheap call costs, but are reluctant to sign a long contract. If that's you, it could be time to switch to one of the new deals that are set to revolutionise the way we buy mobile airtime.

In recent months, all the big mobile phone suppliers have launched, or relaunched, their pay monthly sim-only deals and as a result they are now significantly more attractive. One industry insider was moved this week to describe some of these deals as offering "fantastic value" for mobile users.

Despite their attractiveness, they are only now starting to move into the mainstream, not overly helped by the fact that the comparison websites have not updated their systems to push these consumer-friendly deals.

For the uninitiated, sim-only contracts offer very similar packages to the expensive pay monthly contracts, but, crucially, without the need to sign a contract lasting 18 months, and beyond. Those going sim-only do not, as the name suggests, get a new phone as an incentive. Instead, they are sent a new sim card which can be slotted into the back of their existing handset.

T-Mobile, the market leader in the sector, will, for just £20 a month, give users 500 minutes talktime plus unlimited texts. For £30 a month you get 1,400 minutes, and as many texts as your thumbs can manage.

For those who need more talk time, or are looking to pay.....continued below

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less, there are other deals out there. All the big networks, bar 3, now offer them, with varying prices and call plans.

The beauty of sim-only deals is you can leave at any time with just 30 days' notice.

In the main, they will appeal most to those mobile users who are out of contract and free to move supplier. You'll need to pass a credit check and it will help if you continue to use your present handset. In the main, you'll be able to transfer your existing mobile number to the new network/package.

If you simply must have the "latest" phone, theses deals are probably not for you - but for those who don't fall into that category, they could substantially cut monthly bills.

Even if you are looking to upgrade your handset, they are such good value that it may be worthwhile buying a new phone on a pay-as-you-go (PAYG) tariff - then switching it to a sim-only deal. According to Steven Mitchell, head of contract marketing at T-Mobile, these deals are the perfect middle way between long-term contracts and PAYG deals.

"Since we relaunched our sim-only offering on May 1 with a significantly enhanced offering, it has started to grab the public's attention. You could say it's perfect in the current economic climate. For anyone who has just come out of contract and is happy to carry on using their existing phone, the value on offer is amazing," he says.

Seasoned mobile industry watcher, and the man behind the website Onecompare.com, Anthony Ball, agrees these deals can offer "fabulous" value.

"They're attractive because they are so straightforward, and the value for money is fantastic. The fact that there's no contract to sign just makes it better. With the typical pay monthly contract 18 months in length, and with more companies trying to move them towards two years, the ability to get out after 30 days will appeal to loads of consumers," he says.

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