Understanding the Cost of a Phone Contract

According to some surveys, phone contract subscribers in the UK tend to overspend on their phone bill. One of the most common reasons why is because of unsuitable bundle plans. If youíre planning to apply for a phone contract and you donít want to add to the growing statistic, it pays to understand how much a contract plan exactly costs.

But first, letís define what a phone contract is. As the name suggests, a phone contract hooks you to a contract where you have to pay a monthly fee. The typical contract term options in the UK are 12, 18 or 24 months. When you apply for a phone contract, what you are essentially availing is a handset and a bundle plan for your call, texts and data services. The cost of your contract will therefore depend on these two major elements.

For example, if you want an iPhone 6s from EE at a 24-month contract with 4G services, the possible monthly rate is £41.99 per month. This will cover the cost of the phone as well as your bundle plan, which includes unlimited minutes, unlimited texts and 5GB of data. Other than the monthly fee, youíll also be required to pay a £99 upfront fee.

The cost of your phone contract doesnít stop with just the monthly fee for your handset and bundle plan either. There are other features and extras that can spike up your monthly bill. These include insurance for your phone, voicemail and other types of services. Then there are also the hidden fees that can further increase your bill. If you want to make sure that youíre paying only for what you need and what you are using, it is recommended to peruse your billing statement whenever possible. You might also want to ditch the extras that youíre not really using to save more money in the long run.