People are rejecting mobile “bundle” including new phone calls and data contracts and increasingly turning toward offering better valued payments.
Analysts say more and more consumers are not getting new phones when changing their mobile contracts, but sticking to using existing phones or buying used phones.
The trend of choosing to use similar transactions with only higher flexibility is a reversal of the trend in recent years, when most people tied up phone calls and contracts.
Research by tech analyst CCS Insights shows that more than 40% of people now have similar deals instead of traditional bundled deals or payment plans. It said that ten years ago, just like transactions were less common.
The company’s analyst Joe Gardiner said moving to a deal that only deals allows consumers to save a lot of money because they don’t have to pay off the value of the bundled device.
“In 2024, in the UK, there are 4.4 million new phones sold SIM cards… as more and more customers are buying phones from non-carrier channels such as Direct from manufacturers, such as Apple or Samsung,” he said.
So, as many people contract prices rise, how do many people take advantage of simulation-only transactions?
Why do you want to change?
Although it has been the norm in the past, people realize that buying a phone and contract for a few minutes, data allowances usually don’t mean the best. When you are associated with a contract that is up to two years, you will limit you to getting a better deal and you can pay off your phone within three years.
At the time of writing, Vodafone will offer the iPhone 16 Pro as part of the bundle that contains 5GB of data for £37 per month. However, after taking the phone’s fees away, the usage fee is £13 per month. The authentic deal with telecom company Lebara, similar to the allowance, was £1 per month for the first seven months and sold for £4.90 after that as part of the MoneySavingExpert website.
A study by comparison website Uswitch found that if you’re happy to continue using your current phone, the savings from switching could be up to £350 a year.
“Many transactions offer flexible one-month contracts and have spacious data allowances so you can use data for a long time without bundling data,” said Simrat Sharma of Uswitch. “You can also get some great allowances by using just similar transactions, such as free EU roaming and entertainment packages.”
Gardner said more and more people are buying phones directly from manufacturers. He said increasing consumer attention to sustainability means the second-hand market is booming, and others simply don’t think they need to continue changing their phones, as improvements from consecutive generations of smartphones are now relatively small.
“Recent research has found that the average replacement age for mobile phones is four years,” he said.
More players, more value
Thanks to the so-called Mobile Virtual Network Operators (MVNOS), there are more providers available in the market for people to choose from: these are third-party companies that provide services through transactions with the largest operators. Companies such as ID Mobile, Giffgaff, Lycamobile and Tesco Mobile all operate on infrastructure for major networks such as Vodafone and O2.
According to a survey by the consumer group, these smaller players are overshadowed in terms of flexibility and customer service and price.
Smarty, which does not offer a mobile phone or fixed-term contract, stood out, followed by Voxi and TalkMobile. Which one? It was found that while rolling contracts started from the Big Four (Vodafone, O2, EE and Big Three), consumers could get more data from smaller operators for a price of £5.
Where is Natalie Hitchins? “Many offers include EU roaming and monthly transactions, so you have the flexibility to switch, and unlike large providers, most smaller providers don’t impose contract price increases, so you don’t make any unexpected changes to your statement,” said the company.
Best quotes on the market
USWitch believes that the most valuable similar deal on the market is Talkmobile’s best value deal, with unlimited data costing £16 per month and contract length of one month.
The second one is from O2, which offers 175GB per month for £14, but you have to sign up for a year. ID Mobile’s transaction price is 108GB, another month’s contract. TalkMobile trades at 60GB for £7.95, and three deals are available for one year for £7 per month, offering 40GB.
Those who consider switching will be wise to focus on the amount of data they use – details can be available on the phone’s settings – because the amount you need may be much less than the capacity you pay for.
How to switch
Check if you are still in the contract, text the “message” to 85075. If there is an early exit fee, it may be wise to wait until the contract is over.
If you are in a “Split Contract” agreement, where the data and phone contract end at different times, know when the transaction will be completed so that you can move freely.
Not everyone can simply pull out a new phone when they need or want a new one, but there are other options besides purchasing through a bundled agreement. Repayment financing provided by some retailers such as Apple and potentially use 0% credit cards. Avoid collecting interest contracts.
