What you should understand about buying a mobile phone

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What you need to understand

There are two ways to buy a mobile phone:

prepaid or postpaid (contract).

What these different ways mean.

Words you need to understand.

Extra costs.

Most people buy their mobile phones at a mobile phone store.

If you do not understand what they are selling SAY NO.

There are lots of words to understand. Don’t be afraid to ask for help.

With a prepaid mobile phone you purchase the handset.

You then buy 'credit' (money) to pay for calls and services before you use them.

Once you've used up your credit, you can receive calls but you cannot make any more calls until you buy more credit.

If you want to control the amount you spend on your phone then a prepaid phone is a good idea because you can choose when you buy more credit and how much you want to spend.

PREPAID

These are sometimes called ‘cap’, ‘monthly’, or ‘unlimited’ plans. They often include charges for a new mobile phone.

You will sign a contract to pay money every month for 12 or 24 months. Even if you stop using your phone, it is difficult and expensive to cancel a contract.

Your plan includes a minimum amount that you will pay, for a set amount of calls, text messages, internet you can use each month. If you use more you will have to pay extra. This can cost a lot of money.

If you want to have full control of how much money you spend on your phone, it is better to choose a prepaid phone instead.

POSTPAID

Contracts for Postpaid plans

By signing a written agreement

Or

By landline/home or mobile phone agreement

Or

Agreeing on the internet

A Cap is an example of a post paid plan. You get a network connection, a handset and a number of included calls, texts and downloads each month.

You have to Pay for:

An access charge A 'flag charge' (a call connection fee) on each

call Timed call costs (a charge based on how long

your call lasts e.g. $1 for every 30 seconds)

Plans

When you sign up to a mobile phone contract, you usually have to choose a 'cap'. A cap is the minimum amount you pay each month to make calls, send texts, browse for data, download and use apps (applications) and any other services on your phone.

It is the minimum amount of money you pay each month for buying the mobile phone and for using the services on it.

The more services the mobile phonehas on it the more money it costs.

CAP

DataWhen you use the internet on your mobile you use ‘data’. For example if you get music, pictures, or email on your mobile phone, you use data. These things often cost lots of money.

Costs

It is important to understand what it will cost to do different things on your phone. For example: make calls, send SMS messages, or check your email.

Some of these things can cost a lot of money.

You need to understand Time = money when making calls.

Ask Questions?

It is better to ask questions first before you buy the mobile phone rather than getting big bills.