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Cell Phone Contracts Ins and Outs

Cell Phone Contracts In General

A cell phone contract is an agreement between the buyer and the wireless service provider. Usually it is of 1 or 2 years of duration, during which a consumer is legally bound to remain with the wireless service provider. A pre-paid contract does not need a contract term but then discounts are also not offered. Cell phone contracts specify the service plan that the consumer has opted in for.

The Top Names In Cell Phone Contracts

Cingular and T-Mobile plans let the subscriber roam the world with the same phone for a fee. National plans give the facility of roaming within the nation, from state to state without any extra charges. Some carriers also include Canada in their coverage areas besides the local area. Regional plans are valid only for tri-state areas and they give more talk time and save money. How to Simplify Billing for Your Household Family plans allow splitting minutes between two or more lines thereby becoming a popular plan in households, where cell phones are replacing landlines.

Cell Phone Trials And Discounts

Carriers generally give a trial period before enforcing the contract term. Almost all carriers give at least 14 days whereas Cingular gives 30 days of trial period. A 1-year cell phone contract has a shorter commitment period, which may prove to be beneficial if the phone needs repairs, or is lost. In addition, since the period is short, one may avail of new discounts that come up with their new contract. After the term of 1-year ends, the phone can be kept without any contract and no penalty is charged for not renewing. However, in a 1-year contract, the activation fee and/or the phone may not be cheap. Certain discounts and promotional offers cannot be availed of as in a 2-year period.

Watch For Activation Fees In Cell Phone Contracts

In a 2-year cell phone contract, the activation fee and/or the phone may not be expensive. Huge discounts on the phone may be availed. Special promotions may be availed. However, the phone is kept for a longer duration and hence, more money may be spent on repairing, insuring, or replacing. The opportunity to buy a new phone reduces, and thus may not be eligible to switch carriers. It is always advisable to read the fine print on the contract form. Expensive phones may also opt for phone replacement insurance plans; however, due to the costs of such plans, few subscribe to these plans.

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