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Choosing between Sim Only Contracts and Mobile Phone contracts
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Choosing between Sim Only Contracts and Mobile Phone contracts

Karen Cole

Karen Cole

In these days, it is hard to live without a phone. Whether you use your phone for business or entertainment, you can get so much from your phone. A mobile phone without connectivity is just a device that is not usable. The functionality of a phone is dependent on its cellular network. Regardless of your economic background, there are available cellular networks that will best suit your pockets. There are two major types of networks. That is the sim only contract and the mobile phone network contracts. With sim only contract, you are able to get the right value for your money.

How do these two types of contracts work?

Mobile Phone Contracts

This type of contract is chosen when buying a mobile handset. Basically, this contract comes in installment which is set to be paid over an agreed period of time. On normal cases, you will be required to pay a monthly fixed fee for a period of 2 years. This fee includes the cost of your handset and that of the data plan, minutes and texts.

The sim only contracts.

Unlike mobile phone contracts, sim contracts only cover mobile services. In this contract, you only pay for what you use on your sim card. Once you purchase and fully pay for your device, you will simply pay for the services you want. That is the number of text messages, number of minutes and the data plan that you want.

In the sim only contract, there are two packages. You can choose to have monthly sim contracts or you can choose to pay as you go. These packages work the same way and the only difference is that with the pay as go contract, you are not tied into a fixed monthly contract.

The profitability of the two contracts

In the UK, customers with mobile contracts may be paying a larger amount of money as there is no room for negotiation upon completion of the initial plan. If such negotiations were available, many customers would enjoy huge discounts unless they get other handsets with a 2-year payment plan.

If you are in the mobile phone contract, it is important to ensure that your billing fees are correct. Once you are done, you can move to the sim only contract, which comes with affordable packages. There are various giant companies, such as 3G that offer their clients the right value for their money. However, if you are the kind of person that likes to get the latest phones after every year or two, then it would be recommended that you go for the mobile phone contract. Since your old phone is just about a year old, you may get a good amount that can help you secure a decent phone.

Brand new Smartphones with the latest technology have a price tag which is not affordable to everyone but there are various companies willing to help their customers acquire expensive smartphones at affordable and flexible payment plan. This is the advantage of getting mobile phone contracts.

As for the sim only contracts, it is suitable for the people looking to save money as it is significantly cheaper. If you are a frequent traveler, the sim only contract is the best one for you as you are able to add different sim cards thus avoiding extra costs. Also, if you prefer to pay your fees monthly, the sim only contract offers this option.

If you are conscious about the amount of money you use, it is recommended that you should go for the sim only contracts.

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