Contract Phone V/s Pay as you Go Phones: you Make the Call

by : Keith Rickwood

Being an active mobile user myself, the question that often cross my mind is, which is better - Contract phones or Pay as you go. If you give it a thought and notice the deals available in UK today, you'll find that on a longer term, the Contract phones fare better than Pay as you go. However, Pay as you go phones have their definite advantages too.

The most important factor for the existence of the Pay as you go phones is the liberty it provides to its user. You are not bound to any contract and is free to change your service provider at the slightest discomfort. Most importantly, you have full control over your spendings on mobile bills. However, this freedom comes with a few glitches. Imagine a situation when you have to make an urgent long distance call and you discover that you are out of balance.

On the other hand, this would be a very unlikely situation with a Contract phone. The working principle is just like your credit card - use now, pay later. With Contract phones deals in UK today, you are committed to pay a fixed sum every month for a certain period of time. In exchange, you get a handset, some amount of free calling minutes and texts. The difference in the call charges between the two are noticeable, the Contract phone being on the relatively cheaper side.

Another major cost advantage of the Contract phones is the handset itself. While buying a SIM free phone for Pay as you go, you are expected to pay the full price or maybe with a small discount the store offers. That would leave you less a few hundred pounds. But with Contract phone deals, almost all the handset offered are largely free. The fact that the phone is yours to keep when the contract is over is the icing on the cake.