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13 Oct. 2012

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After crunching the subsidized cell phone math and multiplying the mobile contract costs, I came to the conclusion that buying an unlocked iPhone 5 outright from Apple with zero ties to any contract-wielding carrier is a ringin’ deal. I then compared the monthly cost of going prepaid (aka Pay-As-You-Go) with PC Telecom and Koodo Mobile, a subsidiary of Telus with plans that let you carry-forward unused voice and data balances. Bottom Line: After doing two basic mathematical calculations known as addition and multiplication, I came to the conclusion that opting for a prepaid plan could save me nearly $30 per month, or just over $1,000 in monthly fees over three years.
Use your cell phone outside your local area or travel to another country, and you’ll likely get whacked in the wallet by crazy high roaming charges. A SIM card is a small, thumbnail-sized chip that stores your phone number and personal information. Bottom Line: Paying the big bucks for an unlocked cell phone and opting for a prepaid plan can save you money by helping you to stick to a usage limit, capping spending, and avoiding the dreaded bill shock. Given my cell situation I’m set to save a minimum of $480 over the next three years by paying $783 outright for my fancy unlocked iPhone 5.
We have a basic cell that my son bought back in2009 after his father had a medical emergency and while he was in hospital our landline with Bell went down. So while you make great points i would just like to point out that if you are a person who cannot afford to buy your phone out right and you absolutely need one as you have no home phone the small companies are generally great for contracts. I think one of the main reasons people go for contracts is so they spread the cost of the phone out over several years (even if it costs more in the end).
One tip for people who feel they absolutely, positively have to have a smartphone: Find out what kind of plan your work phone is on. Sorry, meant to add that it’s usually also much cheaper just to buy a pay-as-you-go phone at your destination when you travel for calls within that country, and just use the phone for emergency long-distance calls (and Skype for all other long-distance). I use virgin data card in my iPhone use fongo to make unlimited phone calls in Canada and Skype elsewhere.


In Quebec, the termination fees cannot be more than the original price of the phone, decreasing per month.
Since I bought a Galaxy Ace 2, priced at 200$, activated it on a good Canada-wide plan (25$!) and had a 100$ to buy the phone, it was a terrific deal! When I set mine up, I went with Rogers because they were the only carrier to offer a prepaid $100 plan that wouldn’t expire for a year. An unlocked cell phone is not tied to the carrier you bought it from and can be used with most mobile carriers anywhere in the world by swapping something called a SIM card.
The world (and internet) have changed drastically since I starting using my 2006 candybar cell, and not being able to text friends, check my email, or do bloggy-related things online made my old phone a major liability.
First off, Canadians have the world’s longest mobile phone contracts — sign up for a subsidized phone with one of the big three carriers (Bell, Rogers, or Telus) and expect to be on the hook for three long years.
After comparing the cheapest cell plans offered by Rogers, Telus, and Bell, the numbers were so uncompetitive and similar that averaging a price with a subsidized iPhone 5 was so easy-peasy, it kinda made me queasy. Going prepaid with an unlocked phone also gives me the flexibility to swap SIMs and switch providers if a better deal comes to town.
Americans may have greater choice in the mobile market, but there are cases where roaming Yankees got stuck with a $10,000 phone bill too. When your cell phone is not locked to a specific carrier, you can easily switch networks by swapping the SIM with one from a local service provider and avoid exorbitant roaming charges. Nice thing about Koodo prepaid is these blocks never expire, so you can carry them over to the next month.
In my opinion, the only reason for a fancy phone is so that WHEN on trips, you have access to maps, email, internet, your music, your videos, and a camera, with zoom apps already installed. I am not making huge savings but I enjoy the flexiblity of having an unlocked phone when I travel.


Heck, this Verizon customer racked up a $1,500 cell phone bill in 12 days thanks to a little travel. The shock part happens when a defibrillator is needed to revive your body after your brain realizes the financial impact of that massive cell phone bill. After adding up contract costs, comparing unlocked and subsidized phone options, fearing bill shock, and popping SIMs to avoid roaming fees, I think maybe it’s time to rethink how we buy cell phones. The way that contract-breaking is calculated has changed in the last few years and now the only amount that you have to repay is (percentage of your contract remaining) x (amount subsidized) which makes the decision to sign a contract or not dependent on what the user will do with the phone. I love the fact that it’s so cheap and if my usage ever does go up, I can bring my phone to whichever company is going to have the best plan for how I use it. Finally, with such an expensive phone get the Apple Care option or the equivalent for new non-Apple phones. Also if our phones are not paid off in 3 years they will just clear the tab and call it a loss. With a prepaid cell phone, you can have peace of mind, and he cannot run up an out-of-control phone bill. You can browse a huge selection of prepaid cell phones from all the major wireless carriers on eBay.



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