Upgrade Confusion - costs different

[WillB]

I am currently on a SIM only plan, and looking to upgrade to a new phone. The device and airtime costs are supposely separate, but when i compare a SIM only deal to the same airtime deal with a phone, the plan costs are £7/month more for the exact same plan.

e.g.

SIM only - 20GB/Month/Unlimited texts/calls - £22/month
One+6T - 20GB/Month/Unlimited texts/calls - Plan price £29/month (which includes a special offer of 20GB for the price of 15GB, so actually it's even more of a difference).

How can this be? Surely the airtime costs should be the same, with the device cost changing per device; rather than being ripped off on airtime if you buy it with a phone? 

Any ideas why this is the case?

Will 

[MI5]

Hi @WillB 

Yes, in theory they should be the same, but O2 don’t work that way.

Some use the words "rip off" !

Always cheeper to go SIM only and buy phone outright elsewhere.

[WillB]

well, that is quite poor. Sim only it is.

thanks,

Will

[MI5]

The majority of us regulars on here are sim only or PAYG.
Says it all really

[dgilbert2]

Like above, I've always gone SIM only for years. This year though I did need a new handset and the contract route including handset, via a third party, worked out cheaper 

[Cleoriff]

@WillB

I'm also sim only and have been for years. Luckily in a position to buy the phone outright, though I do think this Note 8 will be with me for some time

[WillB]

thanks all. I'm on the Oneplus3T at the moment, so it's about time for an upgrade, seems to be much better deals at cpw, even on upgrading at o2. Will probably just buy the device outright again though, seems the best value.

[JustSaavy]

It would appear that O2, and probably most Network Providers, seem to like to add a premium towards airtime tarrif on cetain devices.   I have noticed that it seems to be the more expensive ( or newer) the phone the larger the premium.   I believe that this "premium" was created to substitute for the 0% interest on device Credit Plan.