Dial ‘M’ for Mobile

Why sim-only deals are the best way to make savings

When it comes to mobile phone bills, how much you save by switching providers or tariffs depends on whether you need a new phone or not.

It’s quite hard not to be drawn in by the promise of a free or discounted mobile phone that you’ll get if you sign up for a 12-month or two-year contract, making an expensive smartphone seem more affordable.

Of course, as we’re slowly realising now, it’s not quite as simple as that. To get a new free or discount phone or even an upgrade, you’ll need to sign a contract that locks you to the relevant network for 12 months or two years – long enough for the mobile provider to recover the cost of providing the phone.

If you stay with the network even after the minimum contract, the chances are you’re still paying through the nose for your mobile phone bills.

If you’re happy with your current phone, switching to a sim-only deal is the best way to make serious savings on your mobile phone bills.

“It’s no secret, sim-only deals are much cheaper than bill-pay phone contacts,” according to Eoin Clarke, managing director of price comparison site Switcher.ie.

“Once you’ve paid off your phone, you can switch to a sim-only contract, either with your current network or a new one, and save a lot of money every month.”

Indeed, if you’re still on a bill-pay contract dating back from the last time you got a free or discounted phone, and with the cheapest sim-only deals starting at €13 a month with unlimited minutes, texts and data, the chances are you could be paying more than twice or three times as much as you should be.

Before you go for a simonly contract, work out your current monthly usage by making a note of how many minutes and texts you use and how much data you need, then find the best deal that suits your needs.

If you’re not sure what’s the plan to go for, the great thing about sim-only contracts is that they are much shorter – often just 30 days. “So if you find your needs change, it’s much easier to switch again,” Mr Clarke said.

Be aware, though, that if your contract is up and your phone has been restricted to one network, you will need to request the code from the mobile operator to remove the network restrictions, leaving you free to take your phone to another provider. Getting that code can take a few days, so if you plan to change network, make sure you request it in plenty of time.

If you’re a heavy user of your phone, then going for an ‘unlimited’ plan is probably a good idea, but do be aware that there will usually be a ‘fair use’ provision in the terms and conditions that gives the networks a way out should your phone use prove excessive. For calls and texts, that limit is usually set fairly high; excessive use of data has tripped up many a mobile user on these plans, and that could mean extra charges on your account.

Use online comparison tools to help you find the best-value mobile phone deal, such as Switcher.ie. The communications regulator, ComReg, also offers a comparison tool that will whittle down the options to those that fit your needs.

But what if you really need a new phone? Well, given the huge monthly savings made possible by sim-only deals, you should explore every option before you consider tying yourself into a 12- or 18-month contract that comes with a free or discounted phone.

“If you need a new phone but don’t want to fork out for a brand-new model or lock yourself into an expensive monthly bill-pay phone contract, a refurbished phone can be a good option,” Mr Clarke said.

“They can be hundreds of euro cheaper than a new handset, will be in full working order and often have little signs of use. The exact quality depends on the grade you buy, with an A-grade phone being as good as new.”