New phones packed with the latest technology come out all the time – in fact, it’ll soon be time for the iPhone 17 to be launched. But just because your phone might cost lots of money, your sim only plan doesn’t need to. So how can you save money when it’s time to upgrade your phone?
Even though it seems more convenient to head to your mobile carrier and sign up for a contract that bundles a new device with an airtime plan, it’s not always the most cost-effective choice. In fact, buying your phone and airtime plan separately can often save you hundreds in the long run. Here’s why.
The True Cost of Bundled Contracts
Carrier contracts usually spread the price of a new phone over 24 or 36 months. While the monthly payments seem manageable, you often end up paying more than the phone’s retail price—sometimes much more. On top of that, you’re locked into a plan that may not be the best fit for your usage.
The Benefits of Buying Separately
- Lower overall costs: Buying a phone outright means you avoid hidden interest or markups built into monthly payments.
- Freedom to choose: You can shop around for the best SIM-only plan—often far cheaper than bundled contracts.
- Flexibility to switch: If a better deal comes along, you’re not tied down. With an unlocked phone, you can change providers whenever you like.
- No surprises at the end: Once you’ve paid for the phone, it’s yours. Your monthly bill only covers the airtime you actually use.
Let’s do some sums
Let’s say a new smartphone costs €1150. On a carrier contract, you might pay €30 a month for the phone but you’ll be committed to pay for the phone over three years. There will also be an upfront cost for the handset, let’s say €46. When you add in the cost of airtime for €36, with a two year commitment, your total cost will be just under €2100 (€2059) for the upfront cost of the phone, the three year contract for the device, plus a two year contract for the airtime.
If you bought the same phone upfront for €1150 and paired it with a Lyca Mobile SIM-only plan at €14 per month, your two-year cost would be €1,576—a savings of just over €300.
The Bottom Line
While bundled phone contracts seem convenient, they often cost more in the long run. By buying your device outright and pairing it with a Lyca Mobile SIM-only or prepaid plan, you’ll likely save money and enjoy the freedom to choose the plan that fits your lifestyle best.
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