Debating the merits of contract vs. pay as you go mobile phone plans? Network Telecom can help you lower costs, and we will provide you with top-of-the-line customer service – contact us today!


contract vs. pay as you go



Contract vs. Pay As You Go Phone Plans:
The Pros and Cons of Each


Let’s begin here in the old contract vs. pay as you go debate. Signing up for a cell phone contract means you pay a monthly fee for a fixed period of time. Most contracts are set at 24 months and provide customers with a monthly allowance of calls, data usage, and texts.


  • Less money up front: When you sign up for a cell phone contract, you get your choice of available phones, the cost of which is prorated over the duration of your agreement with the provider. That means you don’t have to pay upfront for the device itself.
  • Insurance: These days, a new cell phone is a significant investment. For added protection and peace of mind, providers will offer phone insurance as an add-on to your monthly plan cost when you sign up. You can also add the option separately if you decide you need it down the road.
  • Family plans: If there are multiple cell phone users in your home, you can save a lot of money each year by signing up for a family cell phone plan. Many providers will offer discounts on multiple devices added to your account, greatly reducing your monthly bills.
  • Customer service: This is important, and when you sign up for a contract, you’ll have access to meaningful and effective customer service. That’s not true of all providers, mind you, but just as you’re contractually bound to the phone and its provider, so too are they to be available and responsive when you have queries or issues.


  • Greater monthly costs: With a cell phone contract, you can expect to be met with regular monthly bills that must be paid on time.
  • Less freedom: Don’t expect to be able to upgrade your phone without paying the balance on your current device, and there will also be significant penalties for opting out of the contract before it expires.
  • Hidden fees: It’s a common tale – you’ve signed up for a contract and get your phone activated, and then open your monthly bill to see it’s higher than expected because of extra fees for anything from activating your phone to acquiring a necessary SIM card and data protection. This can cause a major headache when it comes time to pay your bill or in attempting to amend the deal.



 Contract vs. pay as you go: it all depends on your specific needs.


Pay As You Go

Here’s how it works: You select a prepaid mobile service and purchase one of their available cell phones. You then activate the phone and pay to put a certain amount of calling time on it.

These days, you can do that quite easily by logging on to your provider account and adding minutes online. Otherwise, you can visit directly and have them take care of it.

Then, you can make and receive calls until your calling time runs out, at which time you’ll have to reload the phone to use it again.


  • Lower service costs: A pay as you go plan is one of the best ways to save on cell service because – as the name implies – you pay only for the minutes that you use.
  • Freedom: You’re not tied into a lengthy service contract, so you can change providers or phones at any time.
  • Control: This is handy for parents or employers. If you’re buying a phone for someone else – like a teenager or worker – a prepaid plan puts you in control. They can only use as many minutes as you’ve purchased, so you won’t be faced with an astronomical bill at the end of the month as a result of excessive calls and texts.


  • High cost of minutes: Paying only for the minutes you use only saves you money if you’re not making many calls. The rates are likely to be higher on pay as you go minutes, and that can add up if you’re not careful.
  • Phone selection: The range of available phones to choose from is likely to be limited. Some carriers may only offer a few phones that work with the prepaid plans. Additionally, you also may pay a bit more for your phone. Service providers generally offer discounts on phones when you sign a contract.
  • Adding the extras: If you want to use your phone for more than just calls, you’ll have to pay for mobile data service in order to send and receive text messages, check e-mail, or access the internet away from a Wi-Fi connection. You also won’t get the level of customer service you might need if there’s an issue with the phone.



Contract vs. pay as you go: Assess whether you want the freedom that comes with not being tied into a lengthy service contract.

Contract vs. Pay as You Go: Trust Network Telecom for the Best Telecommunications Advice and Service

Network Telecom has been at the forefront of the telecommunications business since 1979. We know telecommunications and we want to share our expertise with you.

We believe in people, service, and excellence and we want to put our experience to use by providing you with solutions that are practical and will save you money.

Whether you are looking to learn how to lower your monthly phone bill, to have a new phone system installed, or your current system updated, you can trust Network Telecom to offer you the expert advice you require.

I am so pleased with the service and the system your team installed. Everyone of you did an outstanding job just as you promised and just as I had heard. You never let me down one step of the way.

Joe Cayen, Canadian Tire, Smith Falls branch

Read more testimonials here.

If your phone system is not working as it should, our trained technicians are available to help 24 hours a day, 7 days a week, 365 days a year.

We carry a huge selection of parts in order to quickly solve any components issue you are experiencing. If you are having a telecommunication or networking issue, we can resolve it quickly and professionally.

In addition to our accredited and certified technical expertise, we offer:

Contact us today for all of your telecommunication questions and concerns; we’d be happy to help you.

contact us