Technology, Philosophy, & Sometimes Both

Thoughts on the World by Jack Umano

Phone Providers Don’t Tell You, Contract Gives No Benefit

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Cell PhoneYou would think you’re getting a better deal by signing a two year contract. But, I just signed up with t-mobile and found the opposite was true.  And, I’m not talking about the pay as you go plan.  Of course, they don’t tell you, but there’s a plan option that’s unlisted…

Here’s how I did it:

I simply told them, “I already own a phone.  I don’t want the benefit of getting a free phone for signing up.”  I did allow them to do a credit check and I signed up for being billed monthly.  They gave me a cheaper rate since they are not giving me the benefit of getting a free phone.  Again, this is not the pay as you go plan.

Here’s how the cost is cheaper:

Simply add up the cost of buying the phone and paying for the cheaper service for 2 years.  Compare that with the cost of the free phone with regular 2 year contract service fees.  That total was cheaper when I buy the phone myself and pay the lower monthly rate.

To get more into the details, the monthly rate was about $10 cheaper without getting the free phone benefit.  So, in 20 months, you would have paid off the free phone that you could have bought for $200.

So, as long as you have a couple hundred bucks to buy the phone (and thus don’t need the free phone benefit), you should definitely do this.  It’s cheaper.  And, you’re not stuck in a contract.  Win, win.

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Written by Jack Umano

June 27, 2011 at 3:06 pm

Posted in Technology

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