The Death of the Mobile Phone Contract

In 2007 Apple released the first iPhone. Little did they know what was to follow in the next decade and a half. 

From the moment the iPhone was born it captivated the world. Customers would excitedly queue for several hours (sometimes days) just to get the golden ticket. In recent years, iPhone and other smartphone lovers have paid for popular mobiles via mobile phone contracts. These tend to be fixed over a period of 12 or 24 months, offering users to pay monthly for calls, texts and the phone itself. By the end of the contract, customers own the smartphone outright. 

But, the telecom industry has since witnessed a shift and, with remote working here to stay and more companies than ever looking at outsourced employees, connectivity is more important than it has ever been (source: Meeko Teams). Today, iPhones and other popular smartphones like Samsung can no longer be bought via enticing mobile contracts that used to cost on average £25 a month. Instead, people are now considering purchasing new smartphones upfront (which is not always feasible) and paying for pay-as-you-go sims. 

So, what exactly does this mean for the longevity of mobile phone contracts? 

Well, it’s likely that mobile phone users will no longer continue to opt for expensive contracts. Pay-as-you-go sims can now be bought for somewhat reasonable prices, providing users with a data connection, and unlimited calls and texts. Users, consequently, need not upgrade to the latest smartphone tech in order to access certain features. 

Lauren Davies of bOnline.com commented: “Mobile phone contracts may well go the same way that pay as you go arrangements with phone providers went; they will serve a purpose but will be majorly overtaken by something else. In the case of VoIP, it is here to stay and moreover, it will become our new way of communicating globally.”

Moreover, Openreach in 2019 announced that traditional telephony, or landlines, will be discontinued and permanently switched off by 2025. Placing its focus on developing the fibre network in the UK, Openreach will provide new infrastructure for current users. Consequently, people in the UK have started to consider the switch to VoIP – also known as Voice over Internet Protocol. In short, a form of digital telecommunication that will enable mobile phone users to send and receive calls and texts via the internet.

So, why might VoIP put traditional mobile phone contracts out of the race? Well, it’s inexpensive, easy to use and is ultimately the way the telecom industry will go. Nowadays, plenty of businesses have already adopted VoIP in the workplace. Likewise, even regular everyday mobile phone users are using it more frequently. Have you heard of Zoom, Skype or even Messenger? Yes, these are all forms of VoIP that you’ve likely been using for years and didn’t even realise. 

In short, mobile phone contracts are too expensive. Companies continue to hike prices and advertise expensive contract deals all while in the face of a cost of living crisis. While this is a result of inflation and other external factors, it is likely the previously popular mobile phone contract has reached its end sooner than we thought. As 2025 quickly approaches, it might now be a better time, more than ever to switch to VoIP.