A mobile phone is a necessity in today’s world. Mobile phone contracts can be difficult to manage and many people complain about the number of minutes or the amount of data that is allowed on each plan. You can also get stuck in a contract plan or you may end up needing to replace your phone on your own.
Before you sign up for a new plan or switch carriers it is important to understand all of the options available.
What Is A Contract Plan?
A contract plan sets you up for a set amount of minutes and data each month. You will be charged an overage fee if you exceed your minutes. Each company will offer slightly different rates and different options for their contract plans. One of the ways that companies lure you to a contract plan is through discounts on the available phones.
At the end of the contract period you are eligible for an upgrade on your phone, which then renews your contract for another few years. You may have more than one person on the contract.
How Can I Get Out of a Contract?
The major disadvantage of a contract plan is that you are locking yourself into using that service provider for a set amount of time. It can be difficult if you need to cut back on expenses. Some services will allow you to downgrade your plan to a lower cost option if you are having difficulty with your budget.
You will need to carefully watch your minutes if you do this to avoid any overage costs.
Another option is to terminate the contract. This involves paying a hefty termination fee, and you should find out what that is before you cancel your contract. Depending on the amount of the fee, the time left on your contract, and your monthly payment, you may be better off finishing out your contract rather than cancelling it.
What About My Minutes?
When you are considering any plan you will need to think about the minutes and data allowed on the plan. If you have had a mobile phone in your past, you can look at your bills to see your average use of talking, texting and data plans. If you are sharing minutes with someone, you will need to make sure that you carefully coordinate how much time you use so that you do not go over.
If you have a teenager or if you text people frequently look for a plan that offers unlimited texting. Family plans can also save you quite a bit of money rather than getting an individual plan for each person in your family.
What Is a Monthly Plan?
A monthly plan is very similar to a contract plan, only you do not have contract. This means that you can terminate service at any time or adjust your cell phone plan as needed. The biggest drawback to a monthly plan is that they do not subsidize the purchase of a phone.
You will need to save up and purchase the phones yourself.
Smart phones can be expensive, and you may find that the idea of free phones is much more appealing and make it worth being locked into a contract. Monthly plans are gaining more popularity and several of the contract providers also offer monthly plans.
What Are My Minutes?
Just like a contract plan, your minutes will be set on a monthly basis. You will have limits on minutes, text and talk with charges if you exceed your contract plan. You may be able to find a plan that offers unlimited talk and text and a large amount of data.
You also have the option of having a family monthly plan.
What Is a Prepaid Plan?
Prepaid plans have cost per minute that is much higher than a contract plan or monthly plan.
A prepaid plan offers the most flexibility when it comes to having a mobile plan. You will purchase minutes either on your phone or with a phone card and then add those minutes to your phone. These plans have a set charge for each minute you talk as well as for each text that you receive. They may have data plans as well.
The cost per minute is much higher than a contract plan or monthly plan. Many people who choose the prepaid plans do not use their mobile phones very often. They may also have a difficult time qualifying for a contract plan because of credit issues.
How Do I Choose a Prepaid Service?
When you are considering a prepaid service, you need to carefully consider the costs associated with each plan. Each phone is tied to a specific service provider, so you will not be able to switch providers unless you buy a new phone to use.
You should look at the amount that each plan charges for minute, the fees for topping up or adding minutes to your phone and the frequency that you are required to add minutes to keep your phone active. Some providers will offer slightly lower rates on minutes if you purchase a card with more minutes on it.
Choosing the Right Plan for You
It can be tricky to choose the correct plan and provider for your individual needs. You need to consider how much you use a mobile phone, and from there you can determine if you should sign up for a contract, monthly or prepaid plan. If you use your cell phone every day then a contract or monthly plan may be the best option for your situation. However if you rarely use your phone, then you may save money buy using a prepaid plan.
When you are choosing a monthly or contract plan, you will want to choose the least expensive plan that offers the minutes and data that you regularly use. This will prevent from having overage fees and end up saving you money. It will also prevent your wasting money on minutes and data that you do not regularly use.
Each provider will offer several different options, and you can compare and contrast the plans available on their websites or one a comparison site.
Finding a Mobile Phone Provider
There are a number of companies that offer mobile phone service in Australia. It can be overwhelming to try to choose between the different providers. One of the best ways to find a good fit is to ask your friends and co-workers which company they have their plan through and whether or not they are happy with it. If you keep hearing complaints about the bills, or call dropping from a particular company you can cross that company off of your list.
In addition to reputation, you may want to consider any special offers that the companies have available. This may be a deciding factor if you are trying to choose between two similar plans and companies. However, do not let yourself be lured in to a plan that does not fit your needs simply to get the latest phone for free or at a discount, because you are locking yourself into a contract.
It is important to look at the overall cost of the phone and plan for the life of the contract.
Other Things to Consider
In addition to the basics listed above there are a few more factors you may want to consider depending on your current circumstances. Researching these options can help you save money on your plan and replacement phones.
International Travel: If you travel extensively for business or you go out of the country frequently for other reasons, you should also consider the international options available on your cell phone. Many companies will allow you to call or text outside of the country, but the rates go up significantly.
Many companies will allow you to call or text outside of the country, but the rates go up significantly.
If you are gone frequently, then looking for a company that offers reasonable international options will be worth it.
International Calls and Long Distance: Another thing you need to consider is how much your plan will cover with both long distance and international calls. Long distance may not longer be an issue with a mobile phone plan, but international calls usually are. If you choose to only have a mobile phone, and you make regular international calls, then you should take this rate into considerations you are choosing a plan, as well.
Many people will not need to worry about this feature, but if you have family outside of the country or if you do business outside of the country you need to take this into consideration.
Replacement Insurance for Your Phone: Insurance for your phone may be well worth the additional cost. It is easy to drop your phone and have it break. If it gets wet, it may be ruined forever. Since you always have your phone with you, you increase the chance of something happening to the phone.
If you are not eligible for an upgrade, you will need to pay out of pocket for the phone, which can be several hundred dollars. Replacement insurance will give you a new phone if it is damaged. The small cost of insurance is often worth having the option of your phone replaced. Most prepaid plans and monthly plans will not offer replacement insurance as an option.
However, you may be able to get it through the store where you buy your phone.
