Last updated: August 2026
A contract is not the only way to get a phone and connectivity, and it is not always the best one. The alternatives are worth choosing deliberately rather than only when a contract is unavailable.
The four alternatives
| Option | Best when | Trade-off |
|---|---|---|
| SIM-only | Your phone works and still gets updates | No new handset |
| Prepaid | Income is irregular, or credit is strained | Higher cost per gigabyte |
| Handset outright plus SIM-only | You have cash and want the lowest two-year total | Up-front cost |
| Keeping your current phone longer | It still works and is supported | None, until support ends |
SIM-only: the biggest saving
On a handset contract a substantial share of the monthly figure is device financing. Remove the handset and that portion disappears, which is why SIM-only costs a fraction for the same allocation.
If your phone works and still receives security updates, this is almost always the right answer. See SIM only deals and SIM only vs phone contract.
Prepaid: control rather than price
Prepaid costs more per gigabyte, and its advantage is not cost. It is that there is no agreement, no credit check, no debit order and no way to run up an unintended bill — and no possibility of an adverse credit listing.
For irregular income or a strained credit position, that is worth more than the premium. See prepaid vs contract.
Buying outright
Across two years, a handset bought outright with a SIM-only plan usually costs less in total than a contract on the same phone. The constraint is cash up front, which is the real reason most people take contracts.
It also leaves the phone unlocked and you free to switch providers at any point.
Keeping what you have
The cheapest option, and the one worth checking before any of the others. Two questions decide it: does it still receive security updates, and is the battery adequate?
If updates have stopped, replace it — that is a genuine reason. If only the battery has degraded, a replacement battery is usually far cheaper than a new contract and buys another year or two.
If a contract was declined
These are the routes available while you address the underlying position. See cellphone contract declined, what now, when can I reapply and no credit check phone options.
See also cheapest cellphone contracts and best contract deals South Africa.
Frequently asked questions
What is the cheapest alternative?
Keeping your current phone and taking SIM-only, provided the handset still receives updates.
Is prepaid cheaper than a contract?
Not per gigabyte. Its advantage is that it commits you to nothing and cannot affect your credit record.
Is buying a phone outright worth it?
Across two years with SIM-only, usually cheaper in total. It needs cash up front.
When should I replace my phone?
When it stops receiving security updates. A failing battery alone is usually cheaper to fix.
More comparisons
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Pricing and availability are set by each provider and change regularly.