Since the introduction of O2 Simplicity during 2008, it had proved to be a winner amongst consumers and all the other mobile network providers since have followed suite. T-Mobile SIM Only are currently attracting many sign-ups; and SIM Only deals have been growing and growing in popularity, and many consumers expected to opt for this rather than going for an upgrade.
The introduction of SIM Only deals have actually come at the perfect time as many many consumers have lost their spending confidence due to the credit crunch and this is a great alternative to a long term contract.
I personally predict that for 2009 sales will surge and all mobile networks will be fighting it out not with their 12 month contract deals or 18 months contract deals but with SIM Only contracts.
For those readers who are unaware of SIM Only deals, it is basically a 30-day mobile phone contract that only comes with a SIM Card and no handset. You can cancel or switch to different mobile networks by giving a 30 day notice and as there is no handset provided, all the savings are passed on through free talk time and free text message allowances.
Ah the ways that phone companies are still diversifying their offerings in order to satisfy consumers while expanding their revenue channels….
Yep a major shift in the market to short term contracts and no phone but also more interestingly a shift to longer term 24 month contracts as the networks try to reward loyalty of their customers with better deals. http://www.simonlycontracts.co.uk/sim-only-contracts-popularity-rises-in-recession.html
At the moment the SIM Only market is more competitive than ever, which is good news for consumers as new deals can be expected frequently. As the SIM Only plans are 30 day contracts you switch as often as you like with the best deals.
We reported a huge rise in sim only deals a few months ago and put this down to three main factors, the recession, the increased marketing behind sim only deals and an increase in the number of providers offering sim only deals (e.g. 3 recently entered the market).
I think this is good news and they will continue to grow in popularity with the economy decline.
I think selling just SIM cards is a good idea. Cell phones have been a around for a while and chances are everyone in the world knows at least one person with an extra cell phone for use – either that or they would rather buy a used phone on Ebay or craigslist. Either way SIM card only sales is a huge plus for the average person.
I think its only the releases of new blackberrys and iphones that is stopping the sales of sim only plans from surging further. Sim only tariffs are extremely value for money and therefore very economical in the current climate.