The Free Cell Phone is Not Always the Cheapest Cell Phone
When considering a cell phone purchase, many are inclined to purchase the cheapest cell phone they can find. However, just because the cell phone is cheap, does not mean that the plan attached to it is. In many cases, the cheap cell phones purchased come attached to carriers that charge exorbitant fees for calling and data plans.
Another point to consider is that many buyers tend to purchase the “free cell phones” in exchange for signing a two-year contract with a specific carrier. While the person signing the contract my believe they are getting a cheap cell phone, they may not realize that they will pay extra in terms of monthly costs for the voice and data plans attached to the contract. This is the way that cell phone carriers recoup the costs of giving away the cell phones free.
When the free cell phones is purchased, the carrier typically requires that buyer purchase a specific data and calling plan that is generally more expensive than other plans are. The users then are locked into that more expensive plan and end up paying from $500 to $1000 more per year then if they would have outright purchased an unlocked phone (phone not attached to a carrier) and chosen a cheaper voice and data plan to suit their needs. Overall, while many buyers believe that the cheapest cell phones are the ones advertised was “free with contract,” in reality, the cheapest cell phones are the ones that are prepaid or unlocked. This is because the buyer purchases the cell phone outright and has a choice as to which carrier and plan they want to use.
For example, people who purchase an unlocked smartphone for $249 own that smartphone outright. While they many be limited to their carrier choices because of the way the phone is built and carries its signal, that buyer still has a choice. If the user buys the phone for $249 outright and pays for a calling and data plan that costs $50 a month, as many monthly plans are now charging for their unlimited services, then that user is paying only $1449 for an entire two years.
In comparison, if the user “purchases” the free phone with two-year contract, that users is typically locked into a $79 plan per month plus he will pay charges for overages in calls and data. This phone winds up costing at minimum $1896 for two years, $400 more than if the user purchased the phone outright or used a prepaid calling plan-where the phones typically cost less than $100. The moral is the cheapest cell phone may seem cheap at first, but it may end up costing much more than anticipated, so always do research before purchasing anything.
