Making mobiles make sense

Many people have mobile phones but few take the time to check that they have the most cost-effective option. With so many options and mobile networks to choose from, here are some hints and tips to get the best deal for you.

Should I get a pre-paid phone or a post paid contract?
The features of pre-paid arrangements are:

• No bills. You purchase credit and recharge when you run out.
• You only pay for what you use when texting or making calls.
• Benefits apply across any phone on any network – perfect for ringing friends.
• You can use your old phone – although there are bundled prepaid deals that come with a new phone.
• Fantastic for controlling your spending or as a first phone where your usage habits are not known.
• Use it or lose it - your pre paid limit will expire after 30 or 60 days. You will have to renew your prepay limit to continue to use the phone and unused credit is lost.
• If your phone is lost or stolen, the prepaid limit is the extent of your loss – apart from the phone of course.

The features of post paid arrangements and mobile phone contracts are:

• They typically combine all charges onto a single bill.
• No drop rate – calls won’t drop out because you have run out of pre-paid credit..
• You can set for automatic payment of bills.
• Capped plans offer potentially lower costs for a minimum monthly commitment.
• Great for you and your friends or partner because many plans have free SMS and phone calls between users sharing the same network.
• If you have an ABN then extra features are available such as bundling monthly usage across users and combine multiple users on one account.
• Contracts usually come with a phone for no extra charge.

If you are after the latest model or more expensive phone, a contract can get it for you at a lower cost. Your phone shop can factor in the reducing value (known as depreciation) of the phone during the period of the contract and thereby obtain a better upfront price. The reduced cost of the phone is based upon your commitment to the term of the contract.  If you terminate the contract you will most likely be required to pay a fee which relates to the unpaid cost of the phone.

If you're on a tight budget, consider buying a cheap phone with a prepaid bundle, then turn on its built-in call meter and use your phone normally for a month or two. If you keep good records -- you can save many hundreds of dollars down the track by going into the right contract for your needs.

Get to know your own mobile phone habits
Services are not all the same and are designed for different types of users. The best thing you can do is get to know your mobile phone habits. Ask yourself:

• Do you typically call more during the day, or does your heavy late-night calling mean you may benefit from lower off-peak rates at nights and on weekends?
• Do you use up the included call value more months than not? You may be better off considering a contract that in the long term will reward you with lower rates and more contractual flexibility.
• How your SMS habits rate? Heavy texters may find value in prepaid bundles that include a huge number of SMS messages.

Once you have worked out what it is you value in your mobile communication consider visiting at least two network providers to get a comparison of services, phones and contracts. Make sure that the network you are investigating covers the area that you will be using your mobile phone.

For more information about mobile phone options visit:www.acma.gov.au/WEB/STANDARD/1001/