The Problem With Sim Only Mobile Data Plans
If we were to look at what types of plans subscribers choose, we will see that very few choose sim only mobile data plans. The vast majority of users get a combo plan that includes a discounted smartphone. Even less choose prepaid plans. Each subscription type has some advantages and disadvantages. Sim only mobile plans should be more popular but there are some caveats to it.
What Makes SIM Only Mobile Data Plans Better
Compared to a subscription that includes a discounted device, you basically save money. Carriers offer discounted devices on certain plans and you may be tempted to think that you are getting a better deal but the opposite will prove to be true.
The discounts to smartphones that carriers offer will end up being paid by the subscriber. If you are getting a phone with some cash off, you will notice that you have to pay a higher monthly subscription. From that higher fee that you are paying, the carriers are covering the cost of offering you a cheaper smartphone upfront. In a certain way, it is as if you are financing your smartphone.
Another positive aspect about sim only mobile data plans is that you may have the option to give up on the contract. Not all carriers allow this but some do. You have the option to end the contract whenever you wish. This offers a greater degree of freedom when compared to other types of contracts. If you get a smartphone along with a plan, then you are locked into that contract for its entirety.
Lastly, you will notice that with sim only mobile data plans, you get more for less. What this means is that you pay considerably less to receive the same benefits. These types of plans are much closer to the real cost of a subscription because the carrier does not have to jack up your bill to cover the cost of a discounted smartphone.
What Is Not So Great About Sim Only Plans
Sim only plans have a major problem in the sense that you do not get a new smartphone. There is no option to get a discounted device which is why it is called sim only. If you are not overdue for a smartphone upgrade or wish to get a new smartphone from a retailer, you will need to pay retail for it upfront.
This problem with sim only mobile data plans makes a lot of subscribers avoid them. What usually happens is for subscribers to get a new device on a 24-month contract. When the contract ends, they already have a two-year-old smartphone and will want an upgrade. For this, they will again get a discounted smartphone on a very expensive contract. It is a vicious circle that is difficult to get out of. If you are not overdue for an upgrade, it is much better to just get one of the many sim only mobile data plans available as it will save you a lot of money in the process.