Types of Mobile Phone Plans

Telecom providers offer a lot of options for mobile phone users. But with the many types of mobile phone plans available, choosing just one can be a challenge even for experienced users. How do you know which type of mobile phone plans will work for you? To help you decide, here's a rundown of the most common types of mobile phone plans available in Australia.

Mobile Phone Plan Contracts

In this type of mobile phone plans, you sign a contract binding you to the network for a fixed period. The contracts are usually good for one to two years and come with a free handset, often with the option to upgrade for a discounted price. You will have to pay a sizable termination fee if you quit this type of mobile phone plan before the contract is over.

Mobile Phone Monthly Plans

This type of mobile phone plans operate on a month-to-month basis, without any long-term commitment. You usually don't get any initial offers with this type of mobile phone plans, although some telcos provide discounted initial rates. The main advantage of this type of mobile phone plans is that you can quit anytime without paying any penalties.

Mobile Phone Prepaid plans

A prepaid plan lets you purchase call credits only when you need them, so there's no commitment or monthly fee. This is ideal for light users who may not be able to maximize other types of mobile phone plans. The rates are usually higher than in postpaid plans, and many pre-paid handsets are locked to the network. The main advantage is that you can quit or switch to other types of mobile phone plans anytime.

Mobile Phone Plan Rentals

Phone rentals allow you to 'borrow' a handset for a given period, along with your chosen type of mobile phone plan. This is best for travelers who won't be staying long enough to commit to other types of mobile phone plans.