Anders Bylund reports via Daily Finance on the pros and cons regarding cellular contracts. Seemingly a lose-lose situation for consumers, Mr. Bylund breaks down the numbers and analyzes the whether to sign away or to immediately swipe $600 or so from your bank account.
Smartphones(Verizon’s iPhone 4 16GB was given as the example) are usually discounted by carriers at $199 with agreement to the their two year contracts. This is in contrast to a $649 price tag for the phone and no commitment, leaving you with the prepaid option. If you chose the two-year relationship with say, AT&T or Verizon, you will be forced into purchasing a data plan which is $30. This is on top of your basic calling and texting plan, ranging from $39.99 to $89.99 based on various ‘perks.’
For those who could do without a two-year handshake, the prepaid cost for 3G and 4G networks is the same as those who go with a contract. “In this case, you’re paying $5 extra per month and you give up the $450 initial discount; you don’t gain much by going your own way,” says Mr. Bylund.
What ‘makes it or breaks it’ for those indecisive with their cellular plans is the steep termination fees. If you tend to move from network to network for whatever reason, the initially appealing discounts offered by cellular contracts will bite back at your wallet in the end.
Looking to rough it without 3G and 4G network speeds? You would save an estimated $150 by using a smart little feature called WiFi. Sticking to a neighborhood coffeehouse or library and having Skype or Google Voice on the ready is what some smartphone users consider to cut the costs.
Consumer Reports also put out a guide a while back about how to cut unnecessary costs from cell phone bills. Something to consider when shopping for that new smartphone and wondering whether or not the instant gratification of a $199 ‘shotgun marriage’ is worth it in the long run. However you decide to deal with your cellular provider, Wireless Emporium has unlocked cell phones and cell phone plans for you to compare and save.
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