In many cases buying a cell phone also means purchasing a longer term contract, which can commit you to a plan for up to 2 years. However, many people don’t want to commit for this length of time and, for these, an option to consider is cell phones without plans. Options for using these include a prepaid phone from a carrier, or purchasing an unlocked phone which can then be used with any carrier, and there are pros and cons to doing this.
Pros
Easier to Control Budget
Using cell phones without plans typically means buying talk minutes up-front and then using these as required during the month. The fact that you are paying up-front typically means it is a lot easier to control your monthly budget and not spend more than you have available. A phone with a plan enables you to keep using the phone once your monthly talk minutes are exceeded, although the cost of doing this can increase significantly. This can bring a shock when you receive the bill and means you may end up paying a lot more than you planned for. The ease of budgeting can be a major advantage of using a no-contract cell phone.
Easier to Change Carrier
Another advantage of no-plan cell phones is that it is easier to change provider. People may want to do this for a few different reasons including moving to a new area where an existing carrier does not provide coverage, or just general dissatisfaction with the level of service a cell phone carrier is providing. With no-plan cell phones, changing carriers is generally a simpler process which can be easily and quickly done as there are no contractual obligations to worry about. Customers with contract cell phones will generally be committed to a long term deal which can be harder to break and will typically involve costs to do so.
Choice of Phones
An advantage of choosing unlocked cell phones without plans is that it means there is a much wider selection of phones available. Using a provider for a cell phone with a contract typically means choosing one of the phones they have available with their deals and this can limit the options. A great number of cell phone models can be purchased unlocked, and using this way to get a mobile phone provides a far wider choice of models from which to find a handset that suits your needs. However, this does not apply to prepaid deals if you want the carrier to provide the phone, where the choice available may actually be more limited.
Cons
Higher Cost
One of the disadvantages typically found with cell phones without plans is that the cost per minute for calling is higher. This can make it more expensive to make calls in comparison to using a contract plan. However, different cell phone providers can have different offers and shopping around may enable you to achieve a better deal and make the cost of prepaid talk minutes a little more comparable to a contract phone. All the features offered for a phone with a contract may also not be available for a no-plan cell phone, which means you may miss out on a few services.
Phone Maintenance
A disadvantage of unlocked no-plan cell phones is that if a problem occurs with the phone then it is your problem to deal with and you will likely get no assistance from the carrier. This can make it more expensive should the phone break down or experience problems and you will need to fund the cost of the repairs. However, this disadvantage would not apply if the option you use involves taking the phone from the carrier as part of a prepaid deal.
Loss of Cell Phone Services
Another disadvantage associated with no-plan cell phones is that you need to keep talk minutes available to be able to use the phone. If the minutes run out and you do not have money to add more this can leave you without cell phone services. This is obviously a disadvantage if you rely on your cell phone or need it in an emergency and is something to think about when considering this type of phone.
When looking into purchasing a mobile phone, there are a few options available. For those that don’t want to tie themselves to long term deals, cell phones without plans are an option to consider. The use of these has pros and cons, with some shown above and these should be considered before signing on the dotted line.