Phone contracts, SIM-only plans and switching

Your phone is probably the bill you will have for longest. Understanding contracts, SIM-only deals and switching rules can save real money every year.

Handset contract or SIM-only?

• A handset contract bundles the phone and the airtime (calls, texts, data) into one monthly payment over a fixed term.
• A SIM-only plan covers only airtime; you use a phone you already own or buy one separately.
• Ofcom found that customers who bought a handset and airtime together could often save by moving to a cheaper SIM-only plan when the contract ends, with estimated average savings of 75 pounds a year (from Ofcom's 2019 review, using 2018 data).
• Before choosing, add up the total cost over the whole contract, not just the monthly price.

End-of-contract alerts (UK)

• Ofcom rules require phone, broadband and pay-TV providers to alert you between 10 and 40 days before your contract ends.
• The alert must say when the contract ends, your current price, the price after it ends, any notice period, and the provider's best deals.
• If you are already out of contract, providers must tell you so and remind you of their best deals once a year.
• Do not ignore these messages: they are your prompt to compare deals or switch.

Switching mobile provider by text (UK)

• Text PAC to 65075 to get a switching code that keeps your number, or STAC to 75075 if you want a new number, says Ofcom.
• Text INFO to 85075 to check whether you are still in contract.
• The PAC is valid for 30 days; give it to your new provider, who must complete the switch within one working day.
• Your old provider cannot charge you for any notice period after the switching date.
• If you are still in contract, you may have to pay an early termination charge; your provider must tell you the charges before you decide.

Phones in the UAE and when travelling

• UAE providers offer prepaid and postpaid plans; read the minimum term, data allowance and any roaming charges before you sign.
• If you study abroad, compare keeping your UAE number on a cheap plan with getting a local SIM; the Tech Self-Sufficiency module covers roaming and eSIMs.
• If you have a problem with your UAE landline or mobile service, complain to the provider first; if it is not resolved, you can escalate to the TDRA, as reported by Gulf News.

Getting the best deal

• Check your real data use in your phone settings for the last few months and buy a plan that fits, not the biggest one.
• Ask your current provider to match a cheaper deal you have found; Ofcom suggests this as a step.
• Turn on spending caps or alerts to avoid surprise charges.
• Keep your contract summary and first bill in your bills folder.