Mobile Phone Tariffs Explained

By: Nick Cox

It's important to choose wisely when deciding on a mobile phone tariff. Take into consideration how you intend to use your mobile phone and research all the different tariff options available. Mobile phone providers offer a range of different services, so finding the right one for you can be time consuming. However, it's worth taking your time when choosing a tariff, because being on a tariff that doesn't suit your needs can lead to unnecessary expense.

The two most popular ways to pay for a mobile phone include:

Pay as you go
As the name suggests, pay as you go mobile phones allow you to pay for call and text credit in advance. The advantages and disadvantages of having a pay as you go mobile phones include:

&bullYou are not tied to a monthly contract
&bullYou are in control of how much you spend
&bullYou are not subjected to a credit check in order to own one
&bullCall charges are generally higher than contract mobile phones
&bullThe initial cost of the mobile phone is expensive

Monthly Contract
When you sign up for a monthly contract, your phone usage is recorded and billed at the end of the month. There is also a monthly service charge. The advantages and disadvantages include:

&bullThere are wide choices of handsets to choose from. Many are free (although the phone costs are covered by your monthly subscription charge)
&bullCall charges are generally less than pay as you go
&bullYou normally get a monthly allowance of free minutes and texts
&bullYou must pass a credit check to qualify for a contract mobile phone
&bullContracts are a minimum of 12 months
&bullIt's easy to lose track of how much you are spending

It will probably be a straightforward decision when it comes to choosing between the above payment schemes. But, choosing which provider and tariff type can be a challenge. Make use of the vast amount of information available on the internet to help you make an informed decision.

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