SIM-Only vs Contract Plan: Which is Better for You?

Choosing a mobile plan in Singapore can feel overwhelming, especially when deciding between a SIM-only plan and a contract mobile plan. Both options serve different needs depending on your budget, data usage, and whether you plan to upgrade your phone.

This guide breaks down the key differences, costs, and use cases so you can confidently choose the right mobile plan in 2026 without overpaying.

Did you know? Searches for “SIM-only plan” exceed 4,000 per month in Singapore, reflecting a growing shift away from long-term contract plans toward more flexible, no-contract options.

Key takeaways

• SIM-only plans are generally cheaper and more flexible than contract plans

• Contract plans suit users who want to bundle a new phone with monthly payments

• SIM-only plans now offer very high data allowances and 5G access

• The best choice depends on your data needs, budget, and upgrade habits

What is a SIM-only plan?

A SIM-only plan is a mobile plan without a bundled phone. You pay only for:

• Mobile data

• Local calls

• SMS and optional add-ons

Most SIM-only plans are no-contract or short-term, offering greater flexibility and better value.

Who should choose a SIM-only plan?

SIM-only plans are ideal for:

• Users who already own a smartphone

• People who want lower monthly bills

• Frequent travellers who value flexibility

• Students and young professionals

• Heavy data users

Pros of SIM-only plans

• Lower monthly cost compared to contract plans

• No long-term commitment or early termination penalties

• Significantly more data for the same price

• Easy to switch telcos or plans anytime

• Often includes eSIM support and digital onboarding

Cons of SIM-only plans

• No subsidised smartphone included

• Upfront cost if purchasing a new phone separately

• Fewer bundled lifestyle or entertainment perks

What is a contract plan?

A contract plan bundles a new smartphone with a mobile plan under a 12- to 24-month contract. Monthly payments cover both:

• The mobile plan

• Phone instalments

Who should choose a contract plan?

Contract plans suit:

• Users upgrading to flagship phones like iPhone or Samsung

• Those who prefer paying for devices monthly

• People who don’t switch telcos often

Pros of contract plans

• Easier access to premium phones without large upfront costs

• Bundled perks such as entertainment subscriptions

• Discounted device price compared to retail

Cons of contract plans

• Higher monthly costs

• Early termination penalties

• Less flexibility to change plans or telcos

• Usually less data compared to SIM-only plans

What is the difference between SIM-only and contract plans?

Why no-contract SIM-only plans are the new trend

• Consumers prefer flexibility over long lock-in periods

• Rising phone prices make separate device purchases more practical

• Digital onboarding and eSIM adoption make switching easier

• Popular with students, remote workers, and frequent travellers

• High-data plans now offer exceptional value

Circles.Life popular no-contract SIM-only plans

Here are examples of Circles.Life SIM-only plans, showcasing how no-contract options deliver strong value:

These plans highlight why many users now prefer SIM-only options over traditional contracts.

How to get a no-contract SIM card in Singapore

1. Choose your preferred telco and SIM-only plan

2. Sign up online or via a mobile app

3. Select eSIM or physical SIM

4. Verify identity using NRIC, FIN, or passport

5. Activate instantly and port your existing number if needed

Final Thoughts

In 2026, SIM-only plans offer exceptional value for most users in Singapore. With high data allowances, 5G access, and no long-term contracts, they provide flexibility that traditional contract plans often lack.

Contract plans still make sense for those upgrading to new devices, but if you already own a phone and want lower monthly costs, a SIM-only plan is likely the smarter choice.