The Transformation of Pay as You GoPay as you go was traditionally targeted at those unable to get a mobile phone contract due to either their age or credit history. The pre-pay option generally meant the necessity of payment for the phone upfront a less advanced handset and more expensive tariffs based upon call and text message costs. As a consequence of these negative aspects, those who expected to use their phone regularly or wanted the latest model would invariably opt for a contract instead. This was of course the intention of the phone networks and manufacturers, as contract users were tied down to set periods of payment, were more likely to lose track of how much they were spending on calls and would ultimately be willing to part with more cash than their pay as you go counterparts. The landscape has however changed in recent years and whilst previously pay as you go packages were essentially very similar, the market is now incredibly competitive. With increasingly more cutting edge handsets available at ever decreasing prices and huge incentives available to customers, pre-pay has gone through something of a renaissance over the past two or three years. No longer is pay as you go the preserve of those who are unable to get a contract phone or who merely want a phone for 'emergencies', but now in many cases a viable and cost-efficient alternative to a mobile phone contract agreement. If for instance you tend to send text messages as opposed to make phone calls then a number of networks offer packages which allow you unlimited free text messages provided you top-up a specified amount on a monthly basis (usually around £15). With deals such as this you get the benefit of 3000 free text messages a month as well as £15 worth of call time: ideal for many users. Not only can the perks and incentives of pay as you go tariffs mean that the monthly cost of pay as you go can work out lower than that of a contract, but there is no longer a gulf in the desirability of pay as you go phones and contract handsets. With a contract you pay for the handset as part of your monthly bill whereas pay as you go generally necessitates the full payment in advance...this does not however mean that the phone is ultimately more expensive on pay as you go. Although £150 upfront may appear to be a lot to spend on a phone if you were to calculate the amount paid for the handset on a £30 a month contract tariff over the course of 18 months you could well be shocked by the amount you are parting with over the duration of the contract. Although contract phones, or SIM only contracts are quite likely to be the best suited option for your needs, don't discount pay as you go without first considering whether it could be a better solution.
Published Tuesday, April 06, 2010
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