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In UK, Consumers Are Now More Aware That They Can Ditch Their Phone Bundles, And Are Increasingly Doing So (theregister.co.uk)

An anonymous reader shares a report: Consumers are now more aware that they can buy the phone and the network access separately, and are increasingly doing so. "Many were totally unaware of the true value of the plan, and this marks a real change," CCS Insight analyst Kester Mann told us. CCS Insight calls the unbundling "cracking the code." Only 36 per cent of UK SIM-only customers expect to take a traditional bundle-plus-phone deal when their current plan ends, CCS found. Mann noted that this figure is considerably higher than the number of SIM-only customers today, who will upgrade to another SIM-only deal -- indicating strong growth for the SIM-only bit of the market. One in 12 phones in use is a second-hand phone.

And there are a variety of fascinating knock-on effects. For example, almost 10 per cent of UK punters now buy direct through Amazon. Operators, who have traditionally acted as credit companies, will have to make their bundles more flexible and attractive. High-margin manufacturers may have to make more use of the refurbished channel, or make older models available for longer. In fact, all OEMs have to look at refurb and online. Mann told us all of these trends are happening already.

33 comments

  1. Heck yeah by Anonymous Coward · · Score: 0

    Who needs all that useless crap leeching money out of your wallet and sucking up time

    1. Re:Heck yeah by cayenne8 · · Score: 1
      What is a "UK punter"?

      Is that some sort of soccer term?

      i'm also a bit curious what the "SIM only" thing is...?

      --
      Light travels faster than sound. This is why some people appear bright until you hear them speak.........
    2. Re:Heck yeah by forkfail · · Score: 1

      Customer.

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      Check your premises.
    3. Re:Heck yeah by kurkosdr · · Score: 1

      A contract that includes only a SIM and a service plan, aka no "subsidized" device. I prefer prepaid bundles personally, but UK networks like GiffGaff specialise in SIM-only service plans.

    4. Re:Heck yeah by julian67 · · Score: 1

      punter = customer.

      Literally a punter is someone taking a punt, a punt being another term for a bet. In common usage it equates to a buyer in the market, i.e a consumer.

      SIM only: you buy separately your phone and your SIM card https://en.wikipedia.org/wiki/...

      So, if you have a network unlocked phone, you can buy a SIM only deal from a phone company. It can be a monthly contract with a fixed term, or a rolling monthly contract, or a PAYG (Pay As You Go) with pre-pay cards/visa card top ups/cash top ups via token etc.

      It doesn't surprise me that more people are going down this route. Here in UK there is decent competition for access to the national 3G and 4G networks. 4G smartphones have been the norm for about 5 or 6 years, even before there was good national 4G coverage. If you have a good 4G phone why not unlock it and shop around and get a better deal? What exactly is a 2018 or 2017 phone offering that wasn't already there in your 2014/5/6 phone? Almost nothing in effect.

      I bought my Galaxy Note II on ebay a few years ago, unlocked it, and used it on different networks according to who offered me the best deal. Then I bought an unlocked LG V20 on aliexpress and put the SIM in the V20. I'm on a monthly SIM only deal so I can use any network unlocked phone I like. A few months ago the phone company (EE) informed me they were raising the tariff. I informed them I was requesting they get ready to port my number to a competitor. Result: I stayed with the same phone company with the same price for another year but now with a 20GB data allowance instead of 12GB. Sometimes the market works.

    5. Re:Heck yeah by julian67 · · Score: 1

      that's 20GB per month

    6. Re:Heck yeah by mjwx · · Score: 1

      What is a "UK punter"?

      Is that some sort of soccer term?

      i'm also a bit curious what the "SIM only" thing is...?

      1. A Punter in this context clearly means customers or potential customers. Traditionally "punter" meant gambler, I.E. to punt on the horses. 2. SIM only is a plan that only provides a SIM. So you provide your own phone. SIM only plans are usually cheaper, I'm paying £6 a month for 100 mins, unlimited texts and 1.5 GB of data. I'm still using my old Nexus 5X because nothing better has come along. The idea that you rent a handset for ridiculous prices is dying.

      --
      Calling someone a "hater" only means you can not rationally rebut their argument.
  2. Rising price of phones are a reason by Anonymous Coward · · Score: 0

    Back in 2016 I got Galaxy S 6 for 31 pounds a month. When my contract was up the Galaxy S 8 was 60 pounds a month. So I decided to get a cheaper Nokia 8 instead. The iPhone XS Max will probably be a hundred pound a month.

  3. Apple by registrations_suck · · Score: 2

    Remarkably, Apple's history of premium pricing may count against it. 41 per cent of customers surveyed agreed (ticking somewhat or completely) with the statement that they would never buy an iPhone, compared to 15 per cent who responded the same way for Samsung.

    I found that interesting...considering I bought my first iPhone direct through Apple, with no contract in 2012, sim-free. I've bought my wife's the same way. I bought my next iPhone direct through Apple, with no contract. I bought my wife's the same way. I'll buy my next iPhone direct through Apple, with no contract. Lather. Rinse. Repeat.

    I bought our phones up front, full price, no contract, even though I could have gotten them "for free" with a contract, NOT because I wanted to upgrade whenever I want - I use my phone until it breaks, gets dunked in water, dropped one too many times, etc., but because I don't want to be tied to any specific carrier. Now, as it turns out, we have been with Verizon this whole time - but we pay less than we would have with a contract, even considering the cost of the phone.

    It's interesting how peoples' motivations vary.

    1. Re:Apple by registrations_suck · · Score: 1

      Just as an aside....in a few months, it will be 6 years since I got my first iPhone, and I'm currently on my second one, which I bought only because my first one got soaked. It has some issues, but I will probably use it another year...which will be an average of 3.5 years per phone. I guess I'm not much of an "upgrader".

    2. Re:Apple by Anonymous Coward · · Score: 0

      I bought my first iPhone direct through Apple, with no contract in 2012, sim-free. I've bought my wife's the same way. I bought my next iPhone direct through Apple, with no contract. I bought my wife's the same way.

      I was wondering where one can get a wife without a contract, but never thought of checking the local Apple store. Thank you sir!

    3. Re: Apple by Anonymous Coward · · Score: 0

      I still have my phone. I was with Verizon but they hiked the prices, started making tons of marketing calls from call centers where they barely spoke English, and became incredibly unreliable. Switched immediately - very glad.

    4. Re:Apple by MightyMartian · · Score: 1

      I bought my first iPhone in 2012 cash up front. Mind you, it was also my last iPhone. Ultimately I like the control that a decent and unlocked Android phone offers, as opposed to phones just so darned tied down that copying anything to the file system requires absurd lengths.

      --
      The world's burning. Moped Jesus spotted on I50. Details at 11.
    5. Re:Apple by Anonymous Coward · · Score: 0

      You're a moron. You've literally hacked yourself trusting retarded Android pseudo-technology. You deserve the worst that can happen as a result of this.

    6. Re:Apple by thegarbz · · Score: 1

      I found that interesting...considering I bought my first iPhone direct through Apple, with no contract in 2012, sim-free.

      I find *this* interesting as I've never met someone who didn't have their iPhone on a 2yr bundled contract.

    7. Re:Apple by Anonymous Coward · · Score: 0

      You'll have to get a refurbished.

    8. Re:Apple by Anonymous Coward · · Score: 0

      Maybe he won the root lottery and he's a firewall sysadmin. Only way you can use these phones.

      Me I have one that can be flashed to Lineage 13 but I only managed to flash it to Android and then I was stuck. Why do these pieces of shit randomly to refuse certain TWRP files or "rom" files I don't know. On another, exact same phone the other files worked.

  4. I haven't bought a bundle phone since the '90s. by aussersterne · · Score: 2

    The value just isn't there. Instead, I have always bought phones one or two years behind the retail cycle, when they start to come off contract and be unlocked. You can have last year's flagship, which is usually still pretty damned good, for pennies on the dollar—under $200 for the phone with just a year of use on it, then a SIM (or before that, phoning in the numbers from the beneath the battery to the carrier) plan for cheap.

    Carriers like TPO and Net10 in the US offer plans with a few gigs of data and unlimited everything else for just $25-$35 a month right now. Extra gigs run $10 a gig or so, refillable anytime, and I rarely end up using it.

    I would not like to be locked into a contract, nor would I like to be limited in when I can upgrade or replace if something goes wrong.

    Of course, this doesn't work so well with Apple phones, which hold their value too well. Which is one of the many reasons I don't use iOS. (The other being because I really don't like the OS experience at all, though I do like some of the apps better than the Android equivalents—but not $1k for a phone better).

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    STOP . AMERICA . NOW
    1. Re:I haven't bought a bundle phone since the '90s. by thegarbz · · Score: 1

      The value just isn't there.

      Debatable depending on location. I always have and still do have a bundled phone. There are literally penies difference between bundle and no bundle as the local carriers screw users who dare to bring their own devices to the table. That said the benefits are disappearing. Certainly 5 years ago it was still almost necessary to be on some kind of system which upgrades you to state of the art every 2 years. Between the quick advances in software and hardware combined with the horrid update practices of manufacturers and old phone that wasn't rooted was barely viable. Though these days those benefits are largely gone. Devices are supported for longer, show little performance differences between them and no longer have differentiating killer features.

    2. Re:I haven't bought a bundle phone since the '90s. by kurkosdr · · Score: 1

      Go prepaid perhaps?

    3. Re:I haven't bought a bundle phone since the '90s. by link-error · · Score: 1

      The problem with those carrier resellers is they have lower priority on the network. AT&T has level 2 priority for their pre-paid Go Phone plans, and tier 3 priority for Cricket Wireless reseller. If you go to a concert or sporting event, you're basically toast.

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      -Unresolved symbol? Byte me!
    4. Re:I haven't bought a bundle phone since the '90s. by Anonymous Coward · · Score: 0

      TCarriers like TPO and Net10 in the US offer plans with a few gigs of data and unlimited everything else for just $25-$35 a month right now. Extra gigs run $10 a gig or so, refillable anytime, a

      You really have to pay >25$ for a few GB?
      Here in Italy you pay 5€ for 1000 minutes and 20GB a month. If you don't consume the GB id will be added the next month. 7,5€ for 30GB. ( Wind-Tre)
      50Mbit download speed in my small ( 5000 inhabitants ) town in the middle of the alps.

    5. Re:I haven't bought a bundle phone since the '90s. by thegarbz · · Score: 1

      No that's just my point. My local plans (I'm not in America) are discounted vs prepaid as an incentive to lock customers into a carrier contract. Prepaid is marginally cheaper if you have a phone you don't want to upgrade, but it is significantly more expensive if I also need to buy a phone.

      This is quite counter intuitive compared to the normal practice of getting product and paying it off by the month, but then you still have to remember they aren't pushing the product, they are pushing service lock in. I think part of the reason for this is our government passed laws 15 years ago forcing companies providing products with services to list the full contractual cost of the product over the period. They had to advertise things with "Minimum contract cost is $xxxx over 24 months". At that point people started saying "Wow THAT much for a phone!" and carriers started severely discounting only the contract customers to keep them locked in while not competing at all on prepaid / SIM only contracts.

  5. MVNO's by p51d007 · · Score: 1

    Been on straight talk, for 5-6 years. FLAT 50 bucks a month, 10GB, unlimited everything else. No this tax, that fee...FLAT rate, perfect!

    1. Re:MVNO's by Anonymous Coward · · Score: 0

      It can be as low as $30-$40 per year (PagePlus, H2O Wireless) if you just need basic service to maintain a number. There's even FreedomPop that provides free service, but it does require a deposit (and the texting/calling is done over data like VoIP or something, from what I hear).

      The MVNO system seems to work pretty well. Now if only some of our politicians would get it in their heads to do the same thing with landline ISPs.

  6. Already moot by Anonymous Coward · · Score: 0

    The telecoms providers have evidently seen this coming since their sim-only rolling contracts are often more expensive than the contracts that come with a phone. I'd been sim-only for about five years, but my phone finally died. I worked out the costs and it's a significant saving for me to get the phone with the calling plan together, in fact there are so many offers around where the phone + plan is cheaper than the equivalent sim-only deal. I'm paying £552 over two years when the phone itself has a list price of >£700. If you don't go direct to the network for your purchase then some of the deals are half price or better, my particular bundle from the network directly was over £1000 over two years. I'll never call it value given the profits those companies rake in, but I'd rather get half the shaft than all of it.

    At the end of the day I'm still buying a phone; I'm just buying it cheaper, slower, and getting more data than I would if I bogught it outright and used a sim-only deal of equivalent content. If there's a way to save money you can almost guarantee that the telecoms networks have a product to suit you, if not directly then indirectly via a third party who buy and sell in bulk.

  7. Expensive and screwed by the small print by Anonymous Coward · · Score: 0

    I've not paid for a phone via a contact for the last three phones I've owned: Nexus 5, LG G5 and Nokia 7+. Tends to work out cheaper if you keep your phone for a decent amount of time.

    The last contract I had, the monthly bill was never the amount originally advertised. Plus mid contract price rises. Getting screwed by the small print. When I tried to cancel, I had to give 30 days notice. 30 days pass, still being charged. They claimed I never called and tried to keep me. Fought it and managed to leave on the original notice, but still. That was with Orange, just after they rebranded as EE.

    If there is an option to avoid that bullshit, why wouldn't you take it? I've since been with giffgaff on their rolling monthly goody bags and never looked back. In that time I've always purchased the £7.50 goody bag, never seeing a price rise in the 5+ years I used them. I have, however, seen my data allowance go from the original 500MB to 750MB to 1GB and recently 2GB. That also includes unlimited SMS and 200 minutes. My wife also uses giffgaff so any call time doesn't come off that 200 minute allowance . If I want to stop at anytime, purchase more or less I'm free to do so.

    1. Re: Expensive and screwed by the small print by Anonymous Coward · · Score: 0

      You should look into Plusnet, when they have deals on they're often cheaper than Giffgaff and in my experience significantly wider 4g coverage

  8. Than why can't you assholes... by Anonymous Coward · · Score: 0

    ...simply just say customer? English, motherfucker...do you speak it?

    1. Re:Than why can't you assholes... by Anonymous Coward · · Score: 0

      English, motherfucker, we invented it.

    2. Re: Than why can't you assholes... by Anonymous Coward · · Score: 0

      What?!

  9. It's called math by nospam007 · · Score: 1

    if you pay 79 bucks for 24 months on a free phone (1896) or buy one for 1000 and pay 15 bucks a month, (1360) just do the math.
    Especially since the suckers don't tell you when the 24 months are up and you continue to pay the 79 for months or years.