We live in an age of signing contracts and committing ourselves to abiding by their terms and conditions. It is therefore with some reluctance to become committed to a contract for the simple purpose of having a mobile phone. There are many advantages of having a phone on a pay-as-you-go basis, no contract, you buy the phone which frees you from ownership disputes should you wish to change network provider, but the determining factor in choosing a contract mobile phone is the cost. A contract phone can save you money in the following ways:
When you sign a contract, your monthly charges remain constant throughout the period of your contract unless you change your plan. Price increases in the telecommunications market cannot therefore be passed on.
With a contract you can have the latest, top of the range phone at the provider’s expense, whereas if you were on a pre paid plan (pay-as-you-go) you would have to buy. The cost would probably deter you from buying such an expensive model.
Any expenses related to the repair and maintenance of contract phones are also taken care of by the provider. If anything goes wrong with your contract phone, the provider would repair it or replace it. Once the contract ends, you can replace your mobile phone with a new one. A basic contract phone would be provided free of charge, the additional cost of an expensive phone would be reflected in a small increase in the rental charge.
All network providers offer a much higher usage limit to those customers who have a contract mobile phone. This is a customer satisfaction inducement to keep their existing customers and to attract new customers. If your phone has an internet facility, providers offer per month a number of free downloads, text messages as well as so many minutes of free calls.
In most cases you can get any remaining free internet downloads, text messages and call minutes rolled over to the next month. Contract users can also change their plans if they feel that their usage is higher or lower than offered in their current plan.
There are several other benefits offered to contract users such as unlimited picture messages or data packs which are not available for non-contract users. Providers also offer voice mail, extra free services, discounts and bonuses to their contract customers. Some providers charge services at half-price or provide free services for the initial months for their contract users.
With contract mobile phones, you are usually exempt from paying set-up charges which are required when getting a network connection. By buying a contract cell phone you can save set-up charges.
Contract users can get an extension of their contract when the original contract-term matures without any additional charges and often at the same rate to retain their customers.