Mobile Phone Contracts - Cost

You can get 30 day rolling contracts such as 02's Simplicity tarrif, but I wouldnt go as far as calling it cheap.

If you get the phone "free" with the contract it's because the service provider is subsidising your new phone. Many modern smartphones cost well in excess of £400 or £500, so to get them "free" then you're going to pay a higher line rental.

If you pay £40 per month, for the first year the service provider is simply recovering the cost of your handset and all your minutes, texts and data is effectively being provided for nothing. It's only in the second year when the SP starts to recoup your usage costs and eventually begins to make some money.

More and more people are choosing to source their own phone and get a SIM only deal. This gives you the flexibilty to change device whenever you want. By removing the handset subsidy, you're massively driving down the cost of running a contract. 

There is always the pay as you go option, complete with top-ups too. 

I've been buying my phones SIM free for years now and choose to go pay-as-you-go.

I'm on Three network and they have various add-on options. The one that I use gives me 300 minutes, 3000 texts, and unlimited data - all for £15 a month! If you don't need a lot of minutes or data you can get it down to 100 minutes, 3000 texts, and 500mb of data for £10.

It all depends on what you are after. I have just upgraded SWMBO's mob this morning and spoke to the "High Value"

team (handling leavers) and got 100mins,unlimited text (or 500 +unlimited landline) plus 750mb for £9.50/month

Oh and a free HTC Wildfire S. It is getting competitive out there.

Thanks for the replies, people.

RGD, can you tell me which provider you managed to get this deal with ?

I have the Galaxy S3 on pre order on a £34 a month contract (one plan on 3) for 2 years with 2000mins,5000 3to3 mins,5000texts and unlimited data. So thats £816 over two years, if I bought the phone without a contract then it's £500 plus another £15-£20 a month for a simillar sim only deal. So the contract is about £50 cheaper than buying the phone and say a £15 a month sim only deal over two years.

Buying a phone and a sim only contract can work out cheaper especially if you are a light user but it depends what phone you buy. Alot of the new top end smart phones can cost a good £400 - £500 nowadays.

The one plan is £26 per month on SIM only, so £312 in your first year before you add your phone of choice.

The benefit is really in the flexibility to change phone often by taking advantage of the relatively good sell-on values in a modern phone.

i'm on an o2 sim-only deal: 300 any network minutes, 500 o2 - o2 minutes, unlimited texts and 100mb wi-fi for £10.50 per month. Can't say fairer than that! 

My wife gets 600 minutes, unlimited texts & 500MB data for £10 a month SIM only on Vodafone & bought an iPhone 4S outright for £499.

Thanks guys. I'm with O2 PAYG already, just topping up when I need to, so the deal noted by Bretty looks pretty good to me. 

I asked the original question because I'd seen all these adverts for mobile phone contracts at what I thought were eye-wateringly high prices, and wondered if there were simpler cheaper options, similar to my very cheap PAYG deal.

Thanks.

I get unlimited calls to UK landlines, 100 mins to any mobile network and 100 texts and unlimited internet for £6.00 per month including vat.

Just ordered a sim free S3