SIM Only Contracts Explained

With many people these days in varying degrees of financial difficulty, its ideal to get services such as mobile phone with terms as flexible as possible. Money is quickly becoming an important resource to be carefully conserved, so anywhere that money can be saved is a boon to everyone.

Some companies offer a type of service known as SIM only, which assumes the user already has a mobile phone and needs only the SIM from the company in question, offers less expensive minute plans and messaging plans than contract phones typically do, and are easy to qualify for, without the hassles of a credit check or an approval process.

SIM only contracts are traditionally offered only in the UK and Europe, due to the economic climate and the prevailing sensibilities of the territories. A few in the US also offer these plans, but they aren't nearly as popular there.

The popularity of these plans has exploded the last year or so, with some companies reporting up to a 60% increase in sales of these plans. It combines the convenience of Pay As You Go plans, without the high per minute cost and limited minute pool issues of those types of phones, and you also get a wider variety of handsets that can be supported. With PAYG plans, you're typically quite limited in handset selection, usually to the lower end, older models without a lot of the newer features. With these offers, you can use the high end phone you already own.

Phone models included that can be supported include Blackberry, Samsung, Nokia and more. The boundaries are limitless with these plans.

Below we explore the various advantages of these type of plans, and break down the benefits and terms so that you can see if these plans are for you.

Who offers SIM only contracts?

SIM only is typically used by individuals who don't wish to be tied down to long contracts for various reasons or who would have a harder time qualifying for traditional phone contracts due to credit issues and/or for people who already own a phone and don't wish to switch devices or phone numbers (most of the time, the user can keep their existing phone numbers).

Many network providers offer this type of service, including, Vodafone, Orange, T-Mobile and more. Companies are starting to realise not everyone values the very latest fancy handsets enough to be locked into a 1-2 year contract, often with penalties attached if the customer attempts to break the contract early, which can amount to quite a bit of money in some cases. These plans allow you to break a contract simply with a 30 day notice. No extra charges, no cancellation fees.

For example, Vodafone SIM only deals start at only £10 per month, so it makes perfect financial sense to switch to these offers. This deal typically includes 100 anytime minutes and 500 text messages, which is quite a bit cheaper than comparable Pay As You Go type offers.

Below we summarize the major strong points of these sort of pay monthly, no commitment deals.

So what are the major benefits of these plans?

- No contracts for the most part; most companies only renew for the next 30 days, giving a customer greater flexibility with their finances.

- No need for a perfect credit score; standards to be approved for a SIM Only plan are much less strict than a traditional mobile phone plan.

- No cancellation fees.

- Greater flexibility; there's a variety of minute/text plans available with these sort of deals, and flexibility is always good for everyone.

- Keep your existing phone and phone number; no need to change your details and the assorted hassles that creates among friends and family.

- Includes many of the benefits of Pay As You Go plans without the extremely high cost and very limited minutes associated with those sort of plans.

- Easy to change or cancel; once again, flexibility is the major benefit of SIM only plans.

- Cheaper minutes/text plans, due to the fact that the provider does not have to provide you with a phone. This saves you big money in the long run.

- Allows you to switch providers easily and quickly if you move and your existing provider's reception or service isn't ideal, without having to worry about breaking contracts.

So how do I get started with this sort of plan?

If you have a phone already, the first step will be to make sure it isn’t "locked". If you purchased it from a different provider than the one you're applying to, it will need to be taken to their shop to unlock it and make sure it accepts their SIM beforehand. Various handsets are different and can accept different kinds of SIMs, so this is the first step before investigating further.

But...how do you know if a phone is locked? It's easy, when you receive a SIM card from the company, insert it into the phone and then turn it on. The results will be immediately apparent: if your phone is locked then the screen will display "blocked", "barred" or "SP lock" and you won't be able to use the phone. This means you won't be able to use the phone with that SIM at that moment. But it's usually fairly simple to get going with a SIM and the company you choose.

Just call up your selected network provider (or visit them in a physical store) and they'll unlock it for you and prepare it to accept their SIM. Some companies charge a small fee for this sort of service, and some don't; it varies from provider to provider.

They'll unlock the phone and prepare it to accept a SIM from their company. When you receive the SIM, just pop it into the phone (a painless, quick procedure typically) and you should be all ready to go.

How can I keep my current phone number with these plans? What do I do to ensure I keep my number?

There are several steps to take in order to preserve your phone number when you start these type of plans:

- Phone your current network provider (assuming you're switching to a different provider) for a code known as a PAC or Port Authorisation Code. This code allows the number to switch to the new provider.
- When applying for a plan, make sure this code gets entered into the form so the provider can switch the number over to your new account.

Next we quickly detail the application process for this kind of plan, which is typically quick and easy, minus the longer review process typical for a contract plan.

So how do I apply for these plans?

Plan applications are simple to initiate if you already have a phone; all it takes is a desire for flexibility and controlled costs without a wish not to be tied down to a contract, which many of us understand these days.

The actual signup procedure is very simple with most companies out there - usually a simple online application of some sort. Just look at the companies' SIM tariffs, choose the SIM you are interested in, enter the PAC (if applicable) and go on your merry way. Simple indeed.

You may need a credit or debt card to complete the checkout process, and entering the typical name, address, etc. that are typical to be entered on any form applying for a service. It typically takes only a few minutes to complete, and you're all set after that.

Most companies typically send out the SIM to you within one working day or so, so you shouldn't have to wait very long to get started with your new plan.

So what's the bottom line?

The bottom line is simple: These plans allow you to access greater benefits, such as increased minute plans and texts, without the need to buy a new phone or enter into a long-term contract. The application process is very simple and quick, and you get to keep your existing handset and phone number with little hassle and no extra charge.

The procedure is simple enough: Just fill out the application, wait a few days to get your SIM only deal, make sure its unlocked, then insert it into your phone and turn it on, and you're ready to talk! No contracts, no commitments, and you can switch providers easily and quickly. Only 30 days needed to cancel, and no contract cancellation fees of any kind.

So as you can see, these type of solutions are ideal for anyone on a limited budget without perfect credit who doesn't want to skimp on handset quality or minute/text plans, yet still wants flexibility and the ability to cancel anytime they wish.

Feel free to investigate the wide range of plans and options available with these kinds of offers, and join the parade of users discovering the value and flexibility of SIM only contracts.


Compare the latest Vodafone SIM only tariffs here