Mobile Phone Contracts

If you have a cell phone, chances are that you have signed a long and somewhat scary looking contract.  Mobile phone companies are notorious for having contracts with many clauses in their favor.  Consumers have more choices now, though, and the day of the two-year cell phone contract may soon be over.

With customers increasingly wary of locking into a two-year agreement, cell phone providers are beginning to offer more options.  Today's cell phones typically fall under one of four different plans: old fashioned two-year contract, one-year contract, month to month, and pay as you go.

The old fashioned two-year contract is reminiscent of the days when the big phone companies monopolized land line service.  The telecommunications industry was remarkably slow to change, and even in the 1990s when cell phones first gained mass popularity, most companies still wanted a relatively long-term commitment from their customers in exchange for providing service.

In the present day, customers have more choices than ever when it comes to cell phones, networks, and providers.  More and more people have internet access via their mobile phones, creating the need for data packages in addition to minutes and text messages.

One year contracts are offered by many cell phone providers.  These companies realize the reluctance of many people to sign a two-year commitment.  Considering that the average marriage in the United States now lasts less than two years, it is understandable that most people do not want to be tied up with a two-year cell phone contract!

Some cell phone providers are now offering month to month plans.  These do not require any long term commitment.  The customer can cancel the plan with 30 days notice.  While these plans provide a good amount of freedom, they typically do not feature the best rates.  If you are looking to save money on your wireless phone service, you are probably better off going with a one-year or even a two-year deal.

The advantage of a two-year cell phone contract is that the wireless provider will usually give you a credit towards a new phone.  Frequently, this is an amount equal to a basic cell phone costing between $50 and $100.  I recommend taking advantage of this if you don't mind a two year commitment.

Pay as you go plans are also available from most wireless providers.  These plans tend to be good for people who rarely use their cell phones.  If you only have a mobile phone in case of emergency, then one of these plans is probably best for you.

Be sure to check with all of the big cell phone providers in your region before signing your next mobile contract!