AT&T Sells SIM-only Service
AT&T’s new SIM-only option is a positive step towards open access, and opens a new chapter in the US cell phone service market. However, it also highlights just how far behind the US is compared to the rest of the world.
A few days ago AT&T began offering customers the option to purchase cell phone service online without buying a phone, but the deal made no sense. The service-only SIM cost $5 ($10 minus $5 online rebate), but required you to commit to a standard 2-year contract. Elsewhere on the site you can get a free phone in return for signing a 2-year contract. There’s nothing to stop you from selling the phone on eBay and keeping the SIM. Why pay $5 to NOT get a free phone?
Wired and Gizmodo ran articles on this bizarre offering, and a day later AT&T said they had made a mistake. The SIM-only option does not require a 2-year contract, and will be available with a pre-paid or month-to-month post-paid plan.
This is good news, but we have a long way to go. In Europe you can buy a SIM card and phones independently at dozens of independent retailers. US carriers have designed all of their systems and processes around selling phones tied to long-term contracts through carrier-owned stores. We have ourselves attempted to purchase SIM-only service in their retail stores and been refused. If you want to buy an unlocked phone you need to know to ask for a “no-commitment price” handset. We suspect that some part of AT&T’s online store was never designed to handle SIM-only service. (Today the cards are “temporarily out of stock.”)
Thank you AT&T. We hope that this is just the first step in flinging your network open.
Sim only deals in the UK are really taking off with all the major networks like t-mobile, vodafone and o2 offering 30-day rolling contracts. The minutes and texts available are better than their 12 or 18 month contract deals and if you already have mobile then its a great choice if you want more value for your money.
I totally agree. Virtually all the UK mobile network providers are fighting it out with various SIM Only deals and offers. The only mobile network provider that is yet to enter the SIM Only game in the UK is Three Mobile. Even Tesco’s who are UK’s largest supermarket chain, are offering SIM Only contracts.
I think SIM only contracts are a great concept and am happy to see consumers taking an interest. Think of how much electronic wastage is saved each year from people taking up SIM card contracts. People need to be aware of the amount of waste that generate each year and the damage it is causing the environment. Im no tree hugger, but every little helps when it comes to making the world a better place for furutre generations.
3 Mobile have got their act together and now have a sim only tariff. One tariff has no monthly charge and so costs you nothing except for the calls and texts you use. Pretty good value.
Three mobile are now in on the SIM Only battle! They have quite a competitive tariff, including unlimited texts and 100 minutes for £10/month! The only issue with the 3 SIM only is you need to have a 3G compatible handset to start with.