No Contract Cell Phone

Especially during uncertain economic times people are always looking for ways to avoid being tied into lengthy and costly cell phone contracts, favoring no contract cell phones. There are a range of places to pick up no contract cell phones, including Walmart, RadioShack and all of the major American cell phone providers such as Verizon and AT&T now offer no contract cell phones, often referred to as “pay as you go”.

At Walmart you can pick up a range of no contract cell phones for as little as $15 which will provide texting and voice capabilities. You can then purchase either monthly plans that you have to manually renew each month (as there is no contract) or prepaid refills that you can use directly on minutes and texts and only need to be repurchased when you run out, making your no contract cell phone purely a pay as you go expense, and you will never end up with left over or unused minutes that you lose each month.

Realizing the market need for no contract cell phones the major providers now offer prepaid cell phones with prices starting at $15 for brand new phones. As with Walmart they offer a mixture of prepaid packages with no contract, ranging from $2 for unlimited daily talk and text that you can cancel any time to pay as you go cards for direct use.

No contract cell phones are especially attractive to people with low credit as with a conventional contract a security deposit will often be requested if you have bad credit, adding insult to injury on top of an 18 month – 2 year contract and a several hundred dollar phone. No contract cell phones are also a great way for parents to control the amount of usage of their children, by limiting the amount that is loaded onto the phone at any one time and not worry about their children potentially losing or damaging an expensive cell phone.

One thing to be aware of when using no contract cell phones, especially pay as you go is to ensure you are fully aware of the cost per minute and cost per text message, as these rates will almost certainly be higher than a conventional land line and you can easily find yourself spending more on prepaid cards than you would on getting the comparable amount of minutes and texts from a contract. Be aware of what you are spending each month and compare it to contracts available to decide if a no contract cell phone is still the right thing for you.

As with everything else, ensure you shop around and look at any special offers and bundles, often if you buy a no contract cell phone and a refill at the same time you can get the phone even more reduced, just make sure you read all the fine print!


No contract cell phones consumer report 2010

In a survey performed by major US cell phone carriers, contract plans still dominate market with steady 90% and no contract cell phones plans take the remaining 10%. While this seems like very small percentage, it has shown large increase compared to survey results from previous years.

Compared to customers with monthly plans, no contract users made fewer calls and rarely use data services. While this can be explained with simpler needs or lower expectation, lets keep in mind that no contract service providers usually have rather steep prices for high speed data services or messaging plans compared to customers with monthly plans or customers with long term ties. Overall data shows that no contract users are more satisfied with the service compared to users who have monthly plans or have long term agreements.

This service is more suitable for lighter use, but survey shows that no contract cell phone options are expanding rapidly and new services and options become available more frequently. No contract data services along with the phone is a good example, becoming more popular. Carriers that specialize in no contract services – Virgin Mobile and Boost Mobile are offering more smartphone models that can be purchased without signing a long term contract. Verizon and T-Mobile are also following these footsteps and offering to their customers almost all their smartphone range with the no contract option. Many big name cellular network carriers offer their no contract cell phones under different brands, for example Sprint’s Boost and Virgin.

No contract phones usually cost full price because there is no subsidy from the cell network carrier, but with the contract a portion of the fees are a lease payment for the phone itself and, in case of breakup, there are usually substantial fees. This is not the case with no contract option and users can expect lower monthly bills because of that.

Editors note.

While survey shows that 90% of the US market is still dominated by contract phone plans, there is no doubt that no contract plans will become more popular in US and will take up a big chunk from existing market. I have reason to believe this because of the market tendencies in Europe, which is, by no secret, slightly ahead of US in cellular communications both with cheaper prices and wider options to choose from. European cell phone market shows that no contract cell phone is a popular choice for kids, elderly people and is often used as a tool to protect privacy.