Understanding Pay As You Go Mobile Phones

By Author: Lucy Carter
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With the pay-as-you-go option for mobile phones, you simply top-up your air-time on your handset from a particular network provider. You can do this either by buying a voucher from a retail outlet or by calling your service provider and buying directly with them.

Some networks apply a time limit on their pay as you go phone deals, meaning if you don't top-up your phone with the voucher within an allotted time it will become invalid. Other providers allow you to buy a voucher and activate it when you choose.

While you will need to top-up your airtime to make calls and send texts etc with a pay as you go deal, the saving grace for many is that even if you've run out of your top-up allowance, you will still be able to receive calls. In some cases, network providers will allow you to pick up voice mails even though you've run out of credit.

Now that I've explained what a pay as you go phone deal entails, the following information will help you decide whether this option is best for your needs.

The benefits of pay as you go phones

Most importantly, choosing a pay as you go mobile deal frees you ...
... from a lengthy contract term and ensures you only pay for what you get, rather than paying a monthly fee for call time and other media that you might very well not use. It also allows you to instantly take advantage of new competitive deals as they arrive on the marketplace, plus if you're not happy with the service you're free to walk away at any time.

Another advantage is that you can upgrade your pay as you go mobile phone as and when you choose. For those who have their eyes open for the latest in mobile handset technology as it arrives, a contract could see you tied into paying for a particular phone for over a year so that you end up missing out on the freshest offerings.

If you're a mobile user who mainly likes to be contactable instead of talking, texting and using the internet for hours on end, pay as you go is the perfect solution as you will pay very little for this kind of usage. What's more, pay as you go phones can now be bought for as little as £5! With a contract, you will be paying for a handset and services whether you use them frequently or not.

Pay as go versus contract

In contrast to the pay as you go mobile phone option, with a contract you will pay a fixed monthly fee for a set period of time, usually for no less than a year. While this will afford you a package that allows an amount of free calls, texts, internet browsing and other media, it ties you in for the duration of the contract and if you don't use your free monthly allowance it could see you losing out by paying for more than you need. There is also the responsibility of having to meet your monthly payments for the term of the contract.

It must be said however that call charges and tariffs for pay as you go phones can tend to be higher than the contract option. There is also the disadvantage that in many cases you will have to foot the full bill for your handset when choosing pay as you go, as opposed to a contract where you pay for it over the length of the agreed term. A final issue for some is that the latest mobiles tend to be only available on contract, you might have to wait a fair while longer for them to become available on pay as you go.

Conclusion

All in all, whether you choose pay as you go phones or a contract as your mobile connectivity solution, it comes down to your individual needs and lifestyle. If you're not interested in the latest phones and only want to pay for your exact usage rather than being bound to a contract, pay as you go affords the flexibility and affordability to do so.
Peter Williams: mobile communications consultant and retailer of pay as you go phones.