contract vs. pay as you go

 

Debating the merits of contract vs. pay as you go phone plans for your business or for personal use?

Contract plans will get you better service and more options, but pay-as-you-go plans can save you money if you’re smart.

For more details. read on:

If you want to learn how effective phone hardware can save your business money and increase efficiency at the same time, contact Network Telecom for the details.

We can install the best productivity technology for your business, and we provide excellent, top-of-the-line customer service, every day of the year!

 

Contract Plans

Contracts are more practical when using multiple phones. | Photo by Eirik Solheim on Unsplash

To start explaining the old contract vs. pay as you go debate, let’s start with what a contract is.

Signing up for a cell phone contract means you’re agreeing to pay a monthly fee for a fixed period of time. For example, $70 a month, for 12 months. Most contracts are set at 12, 24, or 36 months and provide customers with a monthly allowance of calls, data usage, and texts, with higher monthly fees equating to higher limits on data and other features.

Pros

  • 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, because it’s included with your monthly plan.

 

  • Phone 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 usually pay for insurance after the face 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.

 

  • Better Customer Service – 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.

Cons

  • Inflexible Monthly Costs – With a cell phone contract, you will assume the responsibility of regular monthly bills that must be paid on time, and will incur a penalty if you’re late.

 

  • Less Contract Freedom – You typically won’t be able to upgrade your phone to a newer model 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. Hidden fees can be anything from activating your phone, to data protection, to roaming charges, and more. While they’re not impossible to avoid, hidden fees can be a major headache if the user is not especially tech-savvy.

Of course, not all contracts are created equal. When you go to sign a contract, make sure the one you choose includes all the features that are most important to you.

Pay-As-You-Go Plans

Pay-as-you-go is best is you know how to manage your usage.

Here’s how pay-as-you-go plans work: 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 and/or data on it.

These days, you can often easily add time/data by logging on to your provider account and paying online. Otherwise, you can visit a provider location directly and have them take care of it.

Once your plan is set up, 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.

Pros

  • 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.
  • Provider Freedom – You’re not tied into a lengthy service contract, so you can change providers or phones at any time with minimal loss.

 

  • Usage 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.

Cons

  • High Cost-per-Minute – 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.

 

  • Limited 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 may also initially pay a bit more for your phone. Service providers generally offer discounts on phones when you sign a contract.

 

  • Extras Will Cost You – 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.

Ultimately, pay-as-you-go plans are great temporary solutions. If you’re careful and conscious of your phone use, or only need phone access for a limited time, they might be the right choice for you.

 

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Phone Set-Ups for Businesses

If you need to set up phone service for not just yourself, but your whole business, you should contact a qualified local telecom company to help you choose the right hardware and install all the necessary wiring.

Canadian company Network Telecom has been at the forefront of the telecommunications business since 1979.

Whether you are looking to 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.

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.

 

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