SIM only
Part of that is the margins on the handsets. They sell for £X (unlocked) or £X+Y on a contract. Sure the cost of the phone is spread over some years, but the extra is more than a reasonable interest charge for the equivalent loan - especially when there is also an unfront handset charge if you go for a lower monthly contract.
Add to that the fact that a decent phone will easily last five years ...
Biting the hand that feeds IT
