Video:How to Know Whether or Not to Sign a Cell Phone Contract

Transcript:How to Know Whether or Not to Sign a Cell Phone Contract

Hi I'm Nick Jaynes and this is whether or not to sign a contract. I'll be using information from the cell phone guide site on About.com.

How to Know Whether or Not to Sign a Cell Phone Contract

When buying a phone you have to think about many factors. One of them is whether or not you should sign a two-year contract with a provider.

Pros and Cons of Signing a Cell Phone Contract

Here are some pros and cons, and some factors to think about before you sign a contract.First of all, there is the purchase price of the phone. For example, The iPhone4 16GB costs $199 with a two-year contract with AT&T and the 32GB costs $299, again with a two-year contract.If you do not wish to sign a contract at all, with AT&T the phones will run you $599 and $699 respectively and with Verizon, they run $649 and $749 respectively.

The second factor is phone selection. When you decide to sign a contract, there is a wide selection of phones that you can choose. If you elect to go with a prepaid plan, there are only a few phones for you to choose from. Different providers will also carry different phones. Multiple providers carry some phones like the iphone 4. The next thing you have to think about is the plan. All providers have similar plans. Your plan will be based on the phone you pick. You may not need a data or message plan. In other cases you will choose, how much you will need. Here are some basic plans that At&t and Verizon offer.

They both offer 450 Anytime minutes for 39.99900 anytime minutes for 59.99and unlimited anytime minutes for 69.99Both offer unlimited mobile to mobile calls to other phones on their service. However, At&T offer rollover minutes so if you don't use all your minutes you can use them the next month. These plans do NOT include text or data plans. Those will be extra based on the provider and the phone.Signing a contract will also allow you to enroll in a family plan. If you have a family it is typically the best option for you. Under the plan your entire family will share a certain number of minutes. At&t's most affordable plan is 550 minutes for 59.99 while verizon's cheapest is 700 minutes for 69.98. Both services only charge 9.99 for additional lines.

Notes About Whether or Not to Sign a Cell Phone Contract

Signing a contract means you are locked in for two years, and you'll face a cancellation free if you want a different provider. Be sure you are ready to make that commitment. Choose the provider that best suits your needs.

Thanks for watching, if you'd like to learn more please visit us on the web at About.com