SIM-only vs handset contract: what to compare

Choosing between SIM-only and a handset contract is mainly a decision about the phone already owned, total cost and required flexibility. The monthly charge alone may hide the cost of a handset or a longer commitment.

Understand what each option includes

SIM-only normally supplies calls, texts and data without financing a new phone. A handset contract combines mobile service with the cost of a device, although those portions may be presented separately.

Compare the total cost

• Upfront handset payment
• Monthly payments during the minimum term
• Expected price changes
• Insurance and optional add-ons
• The usable life of the existing phone

Choose data from actual usage

Review several recent bills or device records. Allow room for variation without paying for a very large allowance that is unlikely to be used. Check roaming, tethering and fair-use conditions where relevant.

Check coverage and flexibility

• Coverage at home, work and regular destinations
• Minimum term and notice period
• Early termination charges
• Device-payment obligations
• Upgrade rules
• Number-porting arrangements