Contract phones:
Usually lasting around 12 or 18 months, contract phones are basically phones that will give you a certain number of minutes and texts (or sometimes referred to as "caller credits"), for either 12 to 18 month period. When you buy a phone on contract, you are agreeing to pay a certain sum of money to that company each month for the allocated number of texts and minutes. Why is this beneficial you may ask? This will be explained in the next paragraph.
Mainly people who deal with businesses and own a business buy phones on contract as this is the most suitable option for them. They will usually purchase between 600 - 1500 mins per month and about 500 - 1200 texts. As you can imagine, this will be a lot more expensive than the other types of contracts you sign with but it is reasonable for them because that is how much they need communication devices. This means they don't have to waste time topping up their phone every so often and as many business people will tell you, in business - time is everything.
In the long run it turns out to be a lot cheaper than the original price of pay-as-you-go minutes. Pay-as-you-go is as I described above - you are not fixed to a contract, but it is annoying having to top-up all the time. Contract phones are generally cheaper because along with the reduction in the cost of the minutes, you will usually get a phone thrown into the deal. In addition to that, the phone you received is yours to keep after the contract expires. So if you were to buy the Nokia N95 today you could possibly save about £200 - 300 if you bought it on contract.
You will save even more money sometimes because you can buy your phone on contract and receive a "FREE GIFT" too. A "FREE GIFT" is basically a free gift that you get for purchasing that phone with those amount of minutes and texts. They can vary from Microsoft's Xbox 360's and Nintendo's Wii to the Sony PlayStation 3 and the Apple 80 GB Ipod. You will never come across a "FREE GIFT" for a pay-as-you-go phone in your life.
These are the 3 main advantages of your phone on contract and there are many more (e.g. receive bonus minutes, texts, internet credits etc.). I hope from this article you have learned a few benefits about buying phones on contract and save yourself about £100 - £500 on your next purchase of a contract phone.
Thank You for reading this article.
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