What is the Difference Between SIM Only & Handset Tariffs?
February 16, 2022
Is it time to rethink your business mobile deal? Are you unsure of which to choose: SIM Only or Handset Tariffs? You might have stuck with one deal for years, but maybe you should try something different or see if one works better for you.
Let’s take a look at what the difference is between SIM Only and Handset Tariffs, the pros and cons, and what contract would work best for your business.
SIM Only Vs. Handset Tariffs
What is a SIM Only Contract?
A SIM Only contract is where you only pay for the SIM; the handset is not included in the price. Generally, you purchase the handset outright and insert the SIM card into that device, only paying for the desired tariff.
Pros of a SIM Only Contract
Cheaper: As you are only paying for the tariff and not the handset as well, your monthly bills will be lower.
Less Commitment: Whilst you still pay for your plan every month, there is no long-term commitment – and no credit check. You have more freedom over when you can change your tariff or leave your contract.
Any Network: By choosing your own handset, you can also choose any network for your SIM to be connected to.
Cons of a SIM Only Contract
Expensive Handsets: Buying handsets outright can be expensive, especially with newer models and ones with more features.
Locked Handsets: If you choose to keep your handset from your Pay Monthly plan after your contract has ended, you will need to unlock it to use a SIM Only plan from another provider
What is a Handset Tariff?
Also known as a Pay Monthly contract, a Handset Tariff is where you pay for both the SIM plan and the handset every month for the contracted time period.
Pros of Handset Tariffs
Less Initial Cost: When signing up to your contract, there is usually either a little deposit to be paid or none at all. This means you get a new handset straight away with less initial cost.
Manageable Payments: The amount you pay every month is the same, so it is spread out in manageable amounts and will improve your credit score.
New Phone with Every Renew: Once your contract ends, you will be able to renew your contract and receive a new handset.
Cons of Handset Tariffs
Long-Term Commitment: You will be tied into a lengthy contract and if you would like to leave early, you have to pay off what is left of your contract.
Essential Credit Checks: Your credit history will have to be checked to ensure you can make the monthly payments. If your history is unsatisfactory, you will be refused a contract.
More Expensive: Although you can find a good deal for a handset and a SIM, it will generally be more expensive every month compared to a SIM Only plan.
Business Mobile Deals from Ocean Telecom
Our specialist team are able to take you specific business requirement and advise you on tariffs that work best for your staff.