According to Ofcom data, a fifth of all handset customers (19%) are currently out of contract and are paying outdated prices that reflect the cost of paying back a phone, even though this ‘payback’ period has been completed.
“If you already own a phone, switching to a SIM-only contract can save you a significant amount of money in the long run: they typically offer lower monthly rates since you’re not paying for a new phone.
“It’s important to remember that if your bundled phone contract includes a handset, you’re essentially ‘paying it off’ with your monthly phone bills," said Ernest Doku, Uswitch mobiles expert,.
For those not aware, when buying a new iPhone 16 or Galaxy S25 on contract, some of the monthly fee pays for the device whilst a smaller amount goes towards data, calls and texts.
Once the 2- or 3-year contract ends, the phone belongs to the customer, but many continue to pay the same high price even though they now fully own their smartphone.
