Aracer makes the exact point I was going to – contracts are £25+ because you’re paying for the handset. Indeed Vodafone (IIRC) actually split the bill into the handset component and the usage component. People (myself included) are lazy, and don’t switch their contract once you’ve paid your phone off, which is pretty mental.
It’s one of the things I don’t think people really understand what they’re paying for. “Why pay £700 for an iPhone, you can get one free for just £60 a month for 24 months” err…
Personally I like having a new(ish) phone, so I’m happy to just upgrade every two years when my contract ends. Shop around, I do lots of working out of the cheapest deal – I was going to go sim only this time (£7.50/month) and buy an iPhone 7 upfront (£600), but ended up getting it at no upfront cost on a £30/month contract, which is cheaper over the life of the phone, but does force me to keep it for 2 years, which is fine.
As for the OP’s question… no idea, but when’s that ever stopped anyone on here!