What is a SIM Only Deal Compared to a Pay Monthly Plan?

Deciding between a SIM only deal and a pay monthly plan can be overwhelming, especially with Australia's growing list of competitive mobile providers. Each option offers distinct benefits, but the right one depends heavily on your circumstances, preferences, and budget.  

This article is designed to inform Australian consumers about the key differences between SIM only and pay monthly plans, highlight their respective advantages, and empower you to make the best choice for your needs. Along the way, we’ll provide expert guidance on comparing plans and share actionable tips to ensure you snag the perfect mobile deal. 

What is a SIM Only Deal? 

A SIM only plan is precisely what it sounds like. You pay for a SIM card that gives you access to a data allowance, a set number of call minutes, and text messages usually on a monthly basis. Unlike pay monthly plans, a SIM only deal does not include a new handset, making it an ideal choice if you’re happy with your existing phone.  

Here’s what comes with a typical SIM only plan: 

• Access to a specific mobile network (e.g., Telstra, Vodafone, or Optus). 
• A monthly data allowance (often including unlimited texts and calls in Australia). 
• Short-term contracts or prepaid options with flexibility. 

For more information on providers offering affordable SIM only deals, check out our blog on cheap SIM only plans. 

What is a Pay Monthly Plan? 

A pay monthly plan, on the other hand, combines a SIM card and a mobile phone in one package. The plan typically involves a 12-, 24-, or 36-month contract, during which you pay an agreed-upon amount each month for both your usage (data, calls, texts) and the cost of the handset.  

This plan often includes features like: 

• The latest handset spread over manageable monthly payments. 
• Bundled extras like entertainment subscriptions or international calling options. 
• Consistent billing for usage and device costs. 

Key Differences Between SIM Only and Pay Monthly Plans 

1. Cost 

SIM Only Plans:  

SIM only plans tend to be more cost-effective since you’re only paying for your mobile usage. Discounts and exclusive subscriber deals are often available, making it easier to find great value. For example, some providers offer entry-level plans from around $10/month for light users—availability and features may vary. 

Pay Monthly Plans:  

These plans often cost more overall since they include the price of the handset. However, spreading the cost over several months can make owning the latest premium phones more manageable. 

2. Flexibility 

SIM Only Plans:  

Most SIM only deals offer contracts as short as 1 month, or even prepaid options. This means you can switch plans or providers easily, allowing you to adapt to changing data needs or financial circumstances. 

Pay Monthly Plans:  

Pay monthly plans often have long-term commitments ranging from 12 to 36 months. Early termination fees may apply if you decide to break the contract before it ends. 

3. Device Options 

SIM Only Plans:  

Since SIM only deals don’t include a handset, they’re ideal if you already own a device that meets your needs. Keep in mind, however, that the phone must be unlocked and compatible with the network you choose. 

Pay Monthly Plans:  

These plans are a go-to choice for those who want the latest flagship phones from Apple, Samsung, Google, or other brands. For instance, the most recent iPhone may cost well over $1,500 upfront, but spreading the cost across a pay monthly deal makes it more accessible. 

4. Features and Bonuses 

SIM Only Plans:  

Some providers offer perks like data rollover or free international texting on their SIM only plans. Be sure to compare SIM only plans carefully to find the ideal value for your money.  

Pay Monthly Plans:  

Pay monthly plans often include additional benefits like free streaming subscriptions or priority access to network support. This is particularly common with larger providers like Telstra and Optus. For further details, check out our guide to Telstra network mobile phone plans. 

Is a SIM Only Plan Right for You?  

SIM only plans are ideal if: 

• You already have a reliable smartphone that you love. 
• You want to cut down on monthly costs. 
• You value the freedom to switch providers without penalties. 

Who Should Consider a Pay Monthly Plan?  

Pay monthly plans are better suited for: 

• Those wanting the latest smartphone technology without paying upfront. 
• Individuals who value additional bonuses and bundled perks.  
• Users comfortable with long-term contracts. 

Take the Next Step with Confidence 

Choosing between a SIM only plan and a pay monthly plan doesn’t have to be complicated. Both options cater to different needs, so it’s all about finding the right fit for your lifestyle and budget.  

If you’re ready to make your decision, Use the Econnex comparison tool to browse a wide range of SIM only and pay monthly plans from participating providers. Our easy-to-navigate platform lets you filter through many of options to ensure you maximise your savings. 

Disclaimer: The information in this article is intended for general informational purposes only and is based on publicly available data. While we strive to keep the content accurate and up to date, certain details—including pricing, plan features, and availability—are subject to change or may vary by provider or location. We strongly recommend confirming the latest information directly with the mobile service provider before making a decision. Econnex may receive a commission from selected providers when users purchase or switch mobile plans via its platform. Not all mobile plans or providers available in the market are included in our comparison, and availability may depend on your device, location, or network compatibility. This article does not constitute professional advice and should not be relied on as the sole basis for choosing a mobile service.