Many people when choosing their new phone deal make a decision to take out a full contract including the price of a new phone, as opposed to a sim only contract. This means that they get the communications package which usually includes a certain amount of minutes and often unlimited texts, plus they get the chance to choose a new phone to boot.
The advantage of this is that they can change their phone on a regular basis and upgrade it more often than they would be able to if they had to buy a new phone outright each time.
However, they are in effect paying for the phone within the contract and it works out much more expensive than a sim only deal. With a sim only deal you can use your own phone and just buy the sim for the telecom's provider which also usually includes minutes and texts.
If you are not too fussed about always having the latest model than this kind of contract can work out far less expensive an option. It is also far kinder to the environment as you are not trading in your phone all the time!
It is really a personal decision on what type of contract you choose but do the maths yourself and see how much you can save.

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