SIM-only plan + buy phone outright, or telco contract? Which saves more?

Question

My contract is ending and the telco is pushing a new 2-year plan with a "free" phone. But I keep hearing SIM-only plus buying the phone separately is cheaper. What actually works out better?

Ex-Teacher Mr Goh · Accepted Answer

Switched to SIM-only three years ago and never going back. Do the actual sum: a "free" phone on contract is baked into a higher monthly (easily 60 to 90 a month for 24 months). A SIM-only plan with good data is often 15 to 25 a month. Over 2 years that's a difference of maybe 800 to 1500, which usually more than covers buying the phone outright, especially if you get it during a sale or a slightly older model. Bonus: SIM-only plans are usually no-contract so you can switch anytime a better deal appears, and there are always aggressive MVNO promos here. The "free phone" is never free, you're financing it at a markup. Only exception is if you must have the newest flagship day one and can't front the cash, then contract instalment can help cashflow.

Career Switcher Priscilla · Answer

One thing people forget: contract phones sometimes come with better trade-in or roaming perks if you travel a lot. But for most people SIM-only wins on pure cost. Also consider buying a one-year-old flagship, huge savings and still great for years.

Relationship Auntie Gina · Answer

SIM-only all the way. The MVNOs here run crazy promos, I'm paying peanuts for more data than I use. Bought my phone outright during a payday sale. Freedom to jump plans whenever is underrated leh.

SIM-only plan + buy phone outright, or telco contract? Which saves more?

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