Are contracts really value for money??

Kels488

Hi
I have been a payg customer for years, but 3 payg lowest value SIM is not proving value for money. I was thinking of a contract deal may be? But am concerned about the price hikes in contracts that I have read on this forum, and, also it seems that the p/m value of a contract is never the exact amount as advertised, for example, I was on Orange (Worst network ever!!) I was paying £20 p/m 600minutes, 500 texts and 500mb of internet on a Sim only contract, but it always over this amount + I did not go over my allowance! So are contracts better value for money, with regards to call and text allowances? (I'm not really fussed about internet)

grumbler

Kels488 wrote: »

...also it seems that the p/m value of a contract is never the exact amount as advertised, for example, I was on Orange (Worst network ever!!) I was paying £20 p/m 600minutes, 500 texts and 500mb of internet on a Sim only contract, but it always over this amount + I did not go over my allowance!

VAT rise last year? What did your bill say?

So are contracts better value for money, with regards to call and text allowances? (I'm not really fussed about internet)

This depends on what you want.
Surely unlimited minutes for £31 is better than 300 for £15 - if you need unlimited or even just 400.

That said, you can get 600 for £12 on another contract.

DUTR

Kels488 wrote: »

Hi
I have been a payg customer for years, but 3 payg lowest value SIM is not proving value for money. I was thinking of a contract deal may be? But am concerned about the price hikes in contracts that I have read on this forum, and, also it seems that the p/m value of a contract is never the exact amount as advertised, for example, I was on Orange (Worst network ever!!) I was paying £20 p/m 600minutes, 500 texts and 500mb of internet on a Sim only contract, but it always over this amount + I did not go over my allowance! So are contracts better value for money, with regards to call and text allowances? (I'm not really fussed about internet)

One size does not fit all, if a customer finds a tariff that suits their usage then it is great VFM, some customers can tailor their requirment to fit the tariff, sim only can offer great VFM at a low monthly rate, but many customers like to have a shiny new handset on credit.
But I know what you mean with Orange and hidden costs, my bills were always coming in at around £50 pm since changing provider my tariff is what I pay all but twice in 5 years :cool:

zagfles

Trouble with "inclusive minutes" contracts is they only include certain types of minutes. So although you had 600 minutes and never used them all, you'd still usually be charged for calls to numbers like 0845, 0870, 0844, 070, even supposedly free 0800 numbers! Plus if you ever go abroad, your allowance is usually wasted and you get charged for everything.

Generally PAYG, with sensible buying of "bundles" or "packs", will work out better value, unless your usage is very consistent and predictable.

Kels488

grumbler wrote: »

VAT rise last year? What did your bill say?

This depends on what you want.
Surely unlimited minutes for £31 is better than 300 for £15 - if you need unlimited or even just 400.

That said, you can get 600 for £12 on another contract.

I would never use nor need £31 of calls on contract so would be over paying. The 600 minutes for £12 sounds good. Which phone company is this?

Guys_Dad

If PAYG costs 20p - 35p per minute on the main networks, then 100 minutes will cost £20 - £35. That does not compare with the cheap sim-only tariffs you can buy from Tesco, Giff-Gaff, even Vodafone. (I include Giff Gaff because of the goody bag deals)

So PAYG is really only worth it if you have minimal use - or bad credit.

Kels488

Guys_Dad wrote: »

If PAYG costs 20p - 35p per minute on the main networks, then 100 minutes will cost £20 - £35. That does not compare with the cheap sim-only tariffs you can buy from Tesco, Giff-Gaff, even Vodafone. (I include Giff Gaff because of the goody bag deals)

So PAYG is really only worth it if you have minimal use - or bad credit.

I currently have 300 mins for 15 p/m but go over this alot and have to pay additional costs at 35p/minute to other networks.

zagfles

Guys_Dad wrote: »

If PAYG costs 20p - 35p per minute on the main networks, then 100 minutes will cost £20 - £35. That does not compare with the cheap sim-only tariffs you can buy from Tesco, Giff-Gaff, even Vodafone. (I include Giff Gaff because of the goody bag deals)

So PAYG is really only worth it if you have minimal use - or bad credit.

You're not comparing like with like. If you can predict you'll use 100 mins you can buy a pack or bundle, for instance on Vodafone (which are probably one of the more expensive) it'll be £10 for 100 mins, 300 texts and 50Mb over 30 days.

And you can buy them whenever you need them rather than having to buy one a month. For instance if you know you won't be using the phone much for a week or 2 you can revert to paying the normal rates while your usage is low, and if your usage is going to be much higher you can buy a bigger "pack". Or you're going abroad and inclusive mins won't count etc

With a contract you're normally stuck with buying the same thing every month until you change the contract. Which will probably be cheaper if you use exactly 100 mins every month, but most people don't.

Guys_Dad

zagfles wrote: »

You're not comparing like with like. If you can predict you'll use 100 mins you can buy a pack or bundle, for instance on Vodafone (which are probably one of the more expensive) it'll be £10 for 100 mins, 300 texts and 50Mb over 30

Have a look at the 12 month sim only deals here or the £12.50 1 month deals.

http://shop.tescomobile.com/sim-only?gclid=CLaLjLe2urACFSghtAodbGnlmg

Not recommending this, but PAYG doesn't compare - unless, as I said, you are a very light user.

grumbler

Kels488 wrote: »

The 600 minutes for £12 sounds good. Which phone company is this?

http://www.talkmobile.co.uk/simple.html (Vodafone signal)

zagfles

Guys_Dad wrote: »

Have a look at the 12 month sim only deals here or the £12.50 1 month deals.

http://shop.tescomobile.com/sim-only?gclid=CLaLjLe2urACFSghtAodbGnlmg

Not recommending this, but PAYG doesn't compare - unless, as I said, you are a very light user.

Rubbish - have a look at the PAYG bundles here: http://phone-shop.tesco.com/tesco-mobile/help-and-support/bundles.aspx

Example £5 for 150 mins, and you can buy when you want, rather than having to buy the same thing every month as you do with a contract. Plus you can get free bundles when you top up a certain amount - if you top up £15 you get a free 150 min bundle and then you could use the credit to buy 3 bundles for the next 3 months.

So if you use 150 mins a month, that's 4 months for £15, ie £3.75 a month.

Sensible use of bundles on PAYG is generally cheaper than a contract unless your useage is very consistent and predictable.