SIM-Only Starts to Dominate UK Mobile Plans

CCS Insight’s latest consumer research for the UK reveals continued momentum for the SIM-only segment of the market. In our survey of just over 1,000 Britons — nationally representative by age, gender and region — more than four in 10 (42%) told us that their primary personal airtime plan is a SIM-only deal. This represents a steady increase from 35% in our 2019 survey.

About 10 or 15 years ago, the share of SIM-only would have been far lower, as many more people had a traditional contract with a mobile phone plan. Our research found that less than one-third of respondents take this type of contract (30%), with pay-as-you-go accounting for the remaining 28% of the sample.

When we asked respondents why they take SIM-only, we received a wide range of responses. The clear top answer was value for money, cited by 60%. We believe this reflects the range of enticing offers on the market. Two that have caught my eye are a £4.50 per month deal from Lebara with 5 GB of data and a £7 plan with 20 GB from iD Mobile. People may also consider SIM-only plans as offering value because they don’t require paying for a mobile phone as part of the deal.

The second-highest reason for taking a SIM-only deal is to get airtime for a phone bought SIM-free. This makes sense: our data shows that in 2024, over 4.4 million new phones were sold SIM-free in the UK, representing one-third of shipments.

An important driver of SIM-free sales is the rise of non-operator channels, which typically don’t bundle airtime with a device sale. As I discussed in a previous blog, sales of mobile phones direct from a device-maker are growing rapidly; our survey shows that about one-fifth of respondents bought directly from Apple or Samsung, up from just 5% in our 2018 study. Other less-traditional channels such as Amazon, Argos and John Lewis have also become more influential.

The rise in second-hand devices also supports the SIM-free trend. CCS Insight estimates that 5.3 million pre-owned phones were sold in the UK in 2024, up from 3.5 million in 2018. Also, many phones are gifted or handed down to a friend or family member. Almost all need to be paired with a SIM-only plan.

SIM-free sales also go hand in hand with another important trend highlighted by the survey — the growth of online channels. Buying SIM-free is straightforward as there’s no airtime plan to consider, reducing the need to speak with a sales agent. More than half of respondents (55%) to our latest survey told us that their phone was bought online, the highest percentage we’ve recorded in the seven years we’ve asked this question.

The third-top reason for buying SIM-only was “I don’t need a new phone right now”. This reflects lengthening device replacement cycles in the UK as the phone market struggles for innovation. According to our bi-monthly Pulse research of consumers in the UK, the average replacement age of a mobile phone in the UK is now about four years.

Furthermore, replacement cycles are unlikely to shorten. Like in our 2023 survey, we find that 38% of people expect to own their current phone for longer than their last one, nearly three times the 14% who think they’ll own it for a shorter time.

Another reason for being on SIM-only is inertia. A small number of people told us they want a new phone but haven’t got around to buying one. Some may have dropped onto a SIM-only plan when their bundled phone and airtime deal expired.

When we delved into purchase intentions, the responses suggest continued momentum for SIM-only. Eight in 10 SIM-only customers expect to remain on SIM-only in two years, and many more pay-as-you-go customers (14%) plan to move to SIM-only than the other way around (2%).

The research also explored the types of SIM-only plan people took. Just over half (57%) are on a deal lasting 12 months or more, with the remaining 43% on a 30-day rolling plan.

Over the past decade, SIM-only has grown from a small part of the UK market to the most popular type of plan. Its rise goes hand in hand with trends such as the growth of SIM-free device sales, lengthening replacement cycles for phones, momentum for online purchases and the emergence of new sales channels. Everything points to SIM-only plans becoming even more influential in the next few years.