There are many people across the UK who go onto a mobile phone contract, and then every year or two they renew their contract, also receiving a new handset when they renew. However, this can work out quite costly, as the cost of the handset is worked into the tariff, which can be wasted cash for those who didn’t really need a new handset.

With so many people keen to save money on their outgoings, one industry expert has highlighted how it can be extremely cost effective to opt for a SIM only contract rather than to keep going onto new contracts that come with a new mobile phone, particularly compared to the high cost of being tied into a long term contract, which can cost a small fortune over the term of the contract.

Many people are also said to be paying over their fixed contract price each month because they exceed their allowance limits, with data showing that almost a quarter of smart phone owners on contract were paying around £10 more each month and around six percent were paying £20 more each month.

Increased competition has, however, resulted in reduced bills, with one expert stating: “The average bill cost is even lower than before due to a fiercely competitive mobile market and the popularity of the smartphone. The costs of deals have fallen rapidly as mobile networks jostle for position with price reductions, time-limited offers and exclusive deals on new handsets. With the increased popularity of smartphones, even the iPhone 4S saw retailers reducing pay-monthly pricing plans just weeks after release — a unique situation for a new Apple device. The vast range of powerful, affordable android smartphones saw networks quickly under-cutting one another, resulting in savvy shoppers opting for strong deals at every turn.”

There are many companies and agencies across the UK which have free phone 0800 numbers, which means that consumers contacting them from their landline phones are able to make the call free of charge. However, for those who want to contact the same companies and agencies on the same numbers from their mobile phones, there is a charge, which can sometimes be considerable, clocking up to 21 pence per minute.

This could all change in the near future, however, as the UK’s communications regulator, Ofcom, has said that it believes calls to 0800 numbers, which are typically classed as free phone numbers, should be free from all phones and not just from landline phones. This could mean that the many people who end up having to call 0800 numbers from their mobile phones could also start benefitting from being able to make these calls free of charge.

Ofcom is also looking at other measures to simplify the charges relating to other non-geographical numbers, which are also used by many agencies and companies across the UK, such as those starting with 03, 08 and 09. The regulator wants networks to be clearer on pricing for calls made to such numbers, which would make it easier for callers to work out whether they wanted to continue with the call based on the cost.

If the 0800 free calls are also made available from mobile phones in addition to landlines, mobile phone owners will be able to enjoy a far fairer set up, particularly the growing number of people who now use only a mobile phone and no longer have a landline.

Students could enjoy getting cut price SIM only tariffs from a newly launched MVNO in exchange for agreeing to receive targeted advertising via their mobile phone, according to recent reports. The offer has been put on the table by Ovivo Mobile, which is supported by Vodafone MVNA Cognatel.

The company has teamed up with advertising networks such as Google and Adfonic in a bid to deliver advertising that is specifically targeted, and it is initially targeting this at students. For agreeing to receive this targeting advertising, students could get greater value for money on their mobile phone usage by being able to get cut price SIM only deals.

Ovivo Mobile CEO and founder Dariush Zand said: ‘We can offer hugely competitive prices because we will make our money out of mobile advertising revenue. This is a very compelling value proposition compared to anything else out there in the marketplace.’ He added: ‘We are committed to setting customers free from the traditional mobile experience. We know that we won’t be right for everyone but customers that do choose Ovivo Mobile will get a fantastic free service simply by agreeing to receive adverts that closely match their interests. There will be no long-term contracts or monthly commitments and the volume and duration of ads will be tightly controlled to safeguard the overall customer experience.’

An official from Cognatel stated: ‘Ovivo Mobile is turning the traditional prepaid mobile service on its head by bridging the gap between advertisers and hard-to-reach consumers in a unique way that genuinely benefits both parties.’

When it comes to mobile phones, we all have different tariffs designed to suit our needs and we all pay different amounts for our mobile phone usage based on the tariff that we have. There are some people that carefully assess what their needs are when it comes to minutes, texts and data, as this enables them to choose the right tariff for their needs. However, there are also many people who do not do this and who end up getting the wrong tariff and paying through the nose for it.

Although many Brits are eager to reduce their spending given the difficult financial climate, many fail to realise that they are paying out a fortune on their mobile phone simply because they are on the wrong tariff. It is thought that collectively Brits are wasting a whopping £5 billion a year on the wrong tariffs.

Some believe that it is not surprising that so many people are confused over the tariff that they should be on given that there are now more than seven million different deals to choose from. Many failed to understand what sorts of things could contribute to data usage in small ways, such as having apps like Twitter and Skype on their phone.

A senior official from Carphone Warehouse said: ‘When the UK is facing one of the hardest financial times in living memory, it seems crazy that £5billion is being wasted on phone bills. The cost of data charges is a growing issue and this is only going to increase as more people convert to smartphones.’

Finding ways to reduce spending has become increasingly important to many people these days and one of the areas that many people look at when it comes to reducing their spending is their mobile phone use. For some people, switching to a SIM only plan is a great way to save money but although there is no doubt that SIM only offers great value, it is important to find and select the right plan for maximum benefit.

There are SIM only plans to suit a wide variety of needs, ranging from simple SIM only plans with short or rolling contract to SIM only plans that come with a longer contract periods but offer greater value for money in terms of the tariff. In addition to working out what sort of contract period you want to go for you also need to determine your usage requirements in order to choose the right SIM only plan.

There are many people who use their texts, minutes and data far less than they realise yet they end up picking a plan that is far too comprehensive for their needs with a price tag to match. This means that they end up paying way more than they need to on their mobile phone usage. Other people tend to use their services far more than they realise, but because they have opted for an inadequate plan because of the cheaper price they are often stung by charges for exceeding their located minutes, texts and data.

In order to avoid paying too much each month and avoid being charged for exceeding your limits, you need to work out how much you tend to use the inclusive services, which of the services you use most, and what your budget is, so that you can make a more informed choice about the plan you choose.

Bill shock is a term that has become more and more common over recent years, as it is something that an increasing number of mobile phone users have been experiencing as a result of overspending – often without realising that they have done so – on their mobile phone usage. With people now using their mobiles to talk, text and surf, the risk of overspending has become even higher.

There are many people who are eager to cut back on their spending and outgoings, and for some mobile phone users, getting a SIM only deal rather than a standard contract has been an effective option. However, this does not reduce the risk of overspending and bill shock, unless you opt for Pay as You Go, which only enables you to spend as much credit as you have put in your account.

The UK’s communications regulator is now taking steps to put an end to bill shock by making mobile operators put caps on customers’ monthly bills to prevent this from happening. The companies have been given until the summer to do this.

One of the concerns that has been highlighted in recent reports is how customers are experiencing bills shock after having their mobile or SIM stolen and a high bill run up by whoever took it. One provider, Orange, insisted that a customer who had his phone stolen pay a £9000 bill that was run up by the thieves.

Over the years, contract mobile phone plans have become increasingly popular and many people who once had the old style feature phones have now managed to get their hands on one of the stylish new smart phones that are around as part of their mobile phone contract. However, when your contract comes to an end after twelve or eighteen months, do you really need to have yet another smart phone as part of a new or renewed contract?

For many people, the handset that they have is one that they like and have become accustomed to. Most of these smart phones that have been dished out with mobile phone contracts over the past year or so have a range of excellent features which means that for many people getting yet another phone at renewal time won’t really benefit them in terms of getting new features, as their phone already has them.

Rather than waste money on a new contract that comes with another handset, those who are happy with their existing handsets would be better off opting for one of the great value SIM only plans that are available from the variety of providers, as this means that they can continue using the mobile phone that they have become accustomed to, they can avoid cluttering up their home with old handsets, and they can save money by getting greater value for money with SIM only compared to standard mobile phone contracts.

SIM only has become a popular option for those who are keen to enjoy greater value for money, as it is both cheaper and more flexible than standard contracts. The mobile network giant, T-Mobile, is now giving consumers the chance to enjoy even greater value for money, with the announcement that it is slashing the cost of its SIM only deals from this week.

The network has announced that it is cutting the cost of pay monthly deals by up to £2.50 whilst its SIM only plans will be slashed by up to £5 per month. Some of the revised pricing on SIM only includes its £10.50 deal being cut to £8.50, its £15.50 deal being cut to £10.50, its £20.50 plan being reduced to £15.50 and its £25.50 deal coming down to £20.50.

The network operator has also announced a range of other changes that are likely to benefit consumers, which includes making changes to its fair usage policy, which has increased from 100MB to 250MB. Its 24 month pay monthly deals will see prices coming down from the end of this week too.

It has become increasingly important for consumers to save money in the ongoing difficult financial climate, so the new prices and offers from T-Mobile will go some way towards helping mobile phone users to reduce the cost of their usage.

One celebrity pair that most people would never have imagined as ambassadors for SIM only plans is 1980s due Keith Harris and Orville – yet they have recently been highlighting the benefits of SIM only in their own unusual way for Giff Gaff.

SIM only deals have become increasingly popular in the UK over recent years, with many turning to them in order to keep their mobile phone costs down. SIM only provider Giff Gaff recently decided to remind people of the cost effectiveness and benefits of SIM only, enlisting the help of two celebrities to get the message across.

So, who did the SIM only giant use to fight the SIM only corner? Well, it is a pair that most people would never have imagined as ambassadors for SIM only plans. 1980s due Keith Harris and Orville have recently been highlighting the benefits of SIM only in their own unusual way for Giff Gaff in a music video entitled “The CONtract”

In  the bizarre video, Keith Harris wears a hoodie and vest whilst he raps about the freedom that comes with SIM only and the furry Orville joins in for the chorus. The pair even compare contract plans to caged hens in their song, whilst Keith treats us all to some strange dance moves for someone of his age!

Whilst the video is lighthearted, there is a more serious side in that the sale of the SIM only cards from GiffGaff through Facebook could actually end up helping caged hens, as for each card ordered in this way the network has promised to rehome one bird to support charity.

The power of social networking sites has been seen time and time again over recent years, and it seems that this is something that big name companies are catching onto increasingly frequently. Mobile network operator Vodafone recently launched a 24 hour special deal on its SIM only contract plans – and decided to use Twitter to spread the word via its #9SIMO code.

Vodafone managed to get more than five hundred retweets on its offer, which provided a code that would get customers a 50 percent discount on SIM only plans for nine months with the remaining three months being at full price. The offer was only made available until 15^th February on twelve month SIM only contracts through the Vodafone website.

With the use of the discount code consumers have been able to get even better deals on their SIM only plans, which equated to even better value for money. Many people are keen to get onto SIM only deals because they offer lower prices or better value than standard mobile phone contracts.

Vodafone offers a range of different SIM only plans to suit different needs and budgets, enabling consumers who are interested in opting for SIM only rather than standard contract to choose the right plan for their needs as well as for their budget.