A pay-monthly contract has two parts: the phone, and the airtime. When the minimum term ends, the phone is paid for. But on most traditional contracts, the monthly price does not change — you carry on paying the same amount, which now buys you airtime alone at what is usually a poor price.
How to tell where you stand
Your network must send you an end-of-contract notification between 10 and 40 days before the minimum term finishes, and an annual reminder every year after that if you stay. It will say what you pay now, what you could pay on their best alternative, and that you are free to leave. If you cannot find one, log in to your account: the contract end date is on the plan page.
The three ways out
- Drop to SIM-only with the same network. The quickest fix. You keep your number and phone, and the price falls to their SIM-only rate. Ask for their retention offer — it is often better than the public price.
- Take a SIM-only deal elsewhere. Usually cheaper still, especially on a brand that runs on the same host network as you are on now. One text gets you a PAC code and the number moves within a working day.
- Take a new contract with a new phone. Fine if you actually want a new phone. Do the sums honestly rather than treating the upgrade as free — a good handset from two years ago will still be getting updates for years.
The exception: split device and airtime plans
If your deal was structured as a separate device plan and airtime plan (O2 does this, and others have followed), the device part does stop when it is paid off, and your bill drops automatically. Check which kind you have — if your monthly amount fell on its own when the term ended, you are on a split plan and only need to worry about whether the airtime price is competitive.
A rough rule
Out of contract and paying more than the going rate for a SIM-only plan with your allowance? Every month you wait is money gone. Check the SIM-only page, filter to your data allowance, and see what the same thing costs today.