Research Suggests Mobile Phone Customers Are Paying Over The Odds, Says Consumer Comparison Site

    GUILDFORD, ENGLAND, February 12, 2010 /24-7PressRelease/ -- A survey of 250 mobile phone users reveals that just 48% of consumers recognise the term 'SIM only contract' - suggesting that mobile phone users are missing a trick when it comes to finding themselves the best value mobile phone tariff, says leading comparison site www.simonlyoffers.com.

The same survey showed that only a fifth of mobile phone users were aware that a SIM only contract can cut mobile phone tariffs by 50% compared to a handset inclusive deal (see costing example below).

Through keeping hold of their existing handsets or buying the phone they want independently in order to take out a SIM only contract, phone users can not only significantly reduce their monthly tariffs costs, but they will also enjoy shorter contract lengths, which can be as low as thirty days. This gives the consumer greater flexibility to change suppliers as and when the best deals come onto the market.

Richard Patterson, marketing director for Simonlyoffers.com says: "SIM only deals have been available for around eighteen months, so are a relatively new concept. However suppliers are doing everything they can to promote this type of deal so we think awareness will increase in the coming months as people get more used to hearing the term 'SIM only', and as the message about the benefits associated with SIM only contracts spreads."

He continues: "As mobile phones become more advanced, with even the cheaper models having more functionality than many people will ever use, there will be less need to upgrade a handset every eighteen months or so as is now the norm. This is likely to fuel a huge growth in SIM only contracts whilst having a negative impact on handset sales as consumers take advantage of cheaper tariffs and shorter contract lengths."

The survey of 250 mobile phone users was compiled by Simonlyoffers.com in January 2010. The results showed that 48% of subjects claimed to be familiar with the term 'SIM only contract'; and that 21% knew a SIM Only contract could save them money compared to a handset inclusive package. There was no evidence that awareness increased or decreased with regards to certain age groups or gender.

COSTING MODEL
SIM Only contract vs. traditional handset inclusive contract price comparison example

At the time of issuing this press release, The CarphoneWarehouse was offering both a SIM Only and a handset inclusive deal from Vodafone for an iPhone 3GS 16GB.

Both contracts offered unlimited texts and 900 minutes.

Omitting the GBP189.00 that the company charges for the iPhone itself, the traditional handset deal is offered over 18 months at GBP45 per month. If a consumer chose to buy the equivalent handset independently, or use their own handset instead and opted for the same deal but on a SIM Only tariff, then they would only need to commit to a 12 month contract at GBP20 per month.

About Richweb Media Ltd

Richweb Media Ltd is a private company that owns a number of comparison and consumer websites such as Broadband Expert (www.broadband-expert.co.uk), SIM Only Offers (www.simonlyoffers.com) and its latest addition Mobile Phone Expert (www.mobilephone-expert.co.uk). The sites offer impartial advice and information on the latest deals available, allowing consumers to make more informed decisions when purchasing products and services.

For further information, please contact:

Helen Bailey
PR representative, Broadband Expert
[email protected]
01628 771909 / 07852 334178

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