SIM-only contracts soar in popularity

SIM-only contracts soar in popularity

SIM-only contracts had their biggest ever month in July, with more than 250,000 taken up by consumers, new research has claimed.

GfK said the increase in SIM-only sales is part of a wider trend away from paying for mobile phones via pre-pay and towards post-paid. The research agency looked at the financial results of the four UK networks, which revealed three million people moved towards contracts and more than two million moved away from pay-as-you-go. It said the increased availability of Sim-only contracts for less than £10 a month also helped, with volume sales growing by more than 100 per cent on 2011.

GfK said the biggest change in the contract SIM-only market was the advent of longer term contracts. Twelve month deals were growing by over 100 percent year on year, which equates to almost an extra 75,000 contracts sold every month. They are now the most popular contract length, overtaking one month contracts.

Ben Tutt, GfK account manager, said: ‘As the economy remains uncertain, SIM-only contracts are an attractive cheaper option than a new handset deal, or to shelling out a big upfront cost for a prepaid device. Furthermore, the networks are providing ever-cheaper SIM deals. These offer data, as well as minutes and texts, as post-paid customers provide more revenue than prepaid ones.’

Tutt added: ‘As the telecoms industry advances, customers are becoming increasingly savvy to the technology, and networks are able to advertise SIM card deals without fear of confusing the viewer.’ 

Editor: Shujaul Azam

Written by Mobile Today
Mobile Today


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