How do phone only (SIM free) handsets work ?
Phone only handsets mean just that - the phone is purchased without a network connection and without a SIM card. This gives you the flexibility to choose the phone of your choice, one that meets with your exact requirements.
However, handsets bought on a pay monthly contract or pay as you go are usually cheaper as they are heavily subsidised by the networks but you will have to pay the full retail price of a phone only handset.

How do you decide if a phone only is suitable for you ?
If you want the ability to choose the network/tariff with the lowest rates during the times you call most often then this option could be for you. If you think that being able to buy the latest phone when it first comes on to the market is important, then this may be the only way to go as new phones only tend to be released as SIM free for the first few weeks.
If you want to be in control of your own SIM card and don't like the idea of a pay as you go phone that may be 'locked' to prevent you from switching networks until you pay an 'unlock fee' then choose this option.

Advantages:
if you are a pay monthly contract user you can upgrade to a newer phone without having to extend your current contract – as you do with normal network subsidised phones;
if your phone is pay as you go then you can keep your existing pay as you go phone number but get the handset you want;
if your phone breaks and is no longer covered by the manufacturer's warranty, it can be more economical to buy a new phone with more up-to-date features than to pay for the repair of an older handset;
it can be the easiest way to keep your existing number while upgrading to a new handset

Disadvantages:
you will have to pay the full retail price for your phone, unlike pay monthly contract phones and pay as you go phones which are heavily subsidised.
you may have to insure the phone yourselftechnology is changing all the time - your new phone may become dated within a short space of time.
your old SIM card may not be compatible with your new phone - some older models were designed to accept the 5 volt SIM card whereas newer phones are designed to accept the newer 3 volt SIM card. You can check this by removing your battery and SIM card - the voltage rating should be marked on the SIM card.

Summary:
Phone only handsets are not subsidised and you therefore end up paying the full retail price for the phone. However, the main advantages are that you are able to buy the latest phones on the market and be flexible about your choice of Network.

site last updated 28 August 2008