You may have recently noticed a whole new range of mobile phone companies which although aren’t as well known as the bigger providers, are offering cheaper deals. These companies such as giffgaff, Tesco Mobile and Lycamobile are what’s known as mobile virtual network operators (MVNOs).
These MVNOs buy bulk network access from bigger networks and offer them at a cheaper rate to consumers.
MVNOs and who they use:
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Asda Mobile, Virgin Mobile – EE
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Mobile by Sainsburys, TalkMobile & TalkTalk mobile – Vodafone
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Tesco Mobile & giffgaff – O2
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Shebang – Three
MVNOs such as Lycamobile and Lebara offer great deals for calling abroad too, so if you have family or friends outside the UK then an MVNO may be the best deal for you.
So going with a cheaper provider doesn’t necessarily mean you’ll get worse service or are taking a big risk. It just means that you’re saving money by going with a company that isn’t quite as big and has as many outgoings.
SIM only deals can also be cheaper compared to package deals, but it is worth shopping around. Take an iPhone for example; it can sometimes be cheaper to get the phone on finance straight from Apple and take out a SIM only deal from a network provider, rather than spend the money that the latter offers for a ‘free’ phone after 24 months.
Before buying an MVNO package check the coverage in your area for the larger network they are using to make sure you get the most out of your mobile.
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