It used to be if you wanted an iPhone, you had to sign-up for, and lock into a two year contract costing $90 or more a month. But things have changed. More and more carriers are offering prepaid iPhone plans and often at about half of cost of a monthly contract. There are pros and cons to prepaid iPhone plans and here are a few things to consider before selecting a prepaid iPhone plan.
Lower Month Rate
While iPhone plans on contract can cost $90 to $100 or more monthly, most pre-paid iPhone plans run about $45 to $55 a month depending on the carrier you select.
No Early Termination Fees (Cancellation Fees)
Unlike contract programs, you can discontinue your prepaid iPhone plan at anytime. That’s one of the great things about prepaid phone plans, you can cancel and, if you want to, switch carriers at anytime without paying the early termination fees on-contact phone plans charge. And you can port (take) your phone number with you if you decide to switch to a new carrier.
Unlimited Minutes, Texts, and Data
Many of the prepaid plans offer unlimited minutes, texts, and date in some of their plans. But be care when selecting a plan because some plans offer unlimited minutes and texts, but charge additional for data or lower priced plans with a limited number of minutes.
iPhone aren’t free of subsidized
When you buy an iPhone with a contract, the phone company usually subsidizes the cost of the phone making it free or a lot less than it would cost if you bought it outright. Because you can quit a prepaid phone plan at anytime, the phone carrier isn’t going to subsidize the cost of your phone meaning you’ll pay more for that same phone than you would if you bought it while committing to a two year contract.
Prepaid plans don’t always offer the latest phones
Most prepaid iPhone plans offer a limited selection of iPhone models to its customers and usually not the most recent models. In most cases, if you want to have the latest model with the most memory, you’ll need to consider an iPhone with a contract.
You be able to set-up a personal hotspot
With iPhone on contract plans, you can set-up a personal hotspot (tethering) allowing you to share your iPhone’s internet connection with other devices. While this is a nice feature, you won’t be able to use it if your iPhone is using a prepaid plan.