Tech savvy types will often tell you that the most affordable way to buy and own a smartphone to pay for it outright, then choose a SIM-only plan. But is this actually true, especially for the iPhone 5s and iPhone 5c?
On the surface, this does make a fair bit of sense. One of the things that people hate most about phone plans is the feeling that they are 'locked in' for the contract period, so the outright purchase path does save you from feeling obligated to a telco. But based on price and the value of inclusions, is it cheaper, and therefore better?
To figure this out we'll look at the cheaper iPhone models, the 16GB iPhone 5s and 5c handsets. We'll then add in the cost of a pre-paid plan over 24-months and compare with the total cost of some of the telco's plans.
Telco Plans incl. handset repayments
| Plan | Inclusions | iPhone 5s | iPhone 5c |
|---|---|---|---|
| Vodafone $65 Red Plan | Unlimited Calls + 1.5GB Data | $1728 | $1608 |
| Optus $60 Plan | 600 mins + 1GB Data | $1776 | $1656 |
| Telstra $60 Plan | 504 mins + 1GB Data | $1872 | $1704 |
SIM Only Plans (x 24 months) plus outright phone cost
| Plan | Inclusions | iPhone 5s | iPhone 5c |
|---|---|---|---|
| AldiMobile ($35) | Unlimited Calls + 5GB Data | $1709 | $1579 |
| Amaysim ($39.90) | Unlimited Calls + 4GB Data | $1827 | $1697 |
| Bendigo Bank ($39.90) | Unlimited Calls + 3GB Data | $1827 | $1697 |
| C Mobile ($49.90) | Unlimited Calls + 2GB Data | $2067 | $1957 |
| Vaya ($52) | Unlimited Calls + 3GB Data | $2117 | $1987 |
| Live Connected ($55) | Unlimited Calls + 3GB Data | $2189 | $2059 |
| Boost Mobile ($40) | Unlimited Calls + 3GB Data | $1829 | $1699 |
The obvious bits
Thanks to the telcos subsidising the retail cost of the phones, you don't always save money by going the SIM only route. You often get more included value though, especially in the amount of data on offer from month to month.
The not-so obvious bits
One of the big differences between going with a network operator or choosing a smaller virtual telco is whether you get 4G services included in your account. The prices above for Vodafone, Optus and Telstra all include 4G speeds, which the iPhone makes great use of. Of the smaller carriers, only Vaya, Live Connected and Bendigo Bank offer 4G.
You might also miss out on important functionality too, like international roaming. It is certainly worth reading the fine print on these plans before deciding to go the SIM only path.
Joseph Hanlon
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