Dollars And Sense

borrowing and lending

DollarsandSense

Why Adrian pays the most for his mobile

Here’s an example demonstrating the importance of choosing the right plan for your mobile phone. Here are three users, Adrian, Hassan and Elaine, with very different calling habits.

Elaine uses her mobile phone a lot more than Adrian and Hassan, but because of the different mobile plans and contracts they have chosen, it is possible for Elaine to pay less every month than Adrian or Hassan.

 

Mobile Usage

Selected Plan

Monthly Cost

Elaine

Elaine

Heavy user. Makes lots of long calls to friends in the evening.

Off-peak prepaid.

$50

Hassan

Hassan

Average user. Makes short calls both peak and off-peak, but they tend to be more of the latter.

Pay-as-you-go plan.

$60

Adrian

Adrian

Makes very few calls, but occasionally they are long ones.

Low-usage contract plan.

$70

As you can see, even though Elaine makes the heaviest use of her mobile of the three, she pays the least. That’s because she has matched her plan to her calling behaviour.

Hassan is an average user, but his plan charges the same rates for off-peak calls as for peak calls, which increases his overall spend.

While Adrian makes few calls, the low-usage plan he has chosen (with a lower monthly access fee) charges higher per-minute rates for calls. If his few calls were always short, this wouldn’t be a problem, but occasionally he likes a long chat. Unfortunately for him, it’s a costly privilege!

Take your time when choosing a mobile plan

Mobile phone contracts can be confusing, and they often involve a component of debt. This is in the form of either a contract where you pay a small amount each month with your bill to repay the phone company for the purchase of the handset, or where you pay the phone company money every month for the calls you have already made.

The key is not to rush into a decision, but spend some time working out which plan would suit you best. It’ll save you a lot of money in the long run!

Read more about choosing a mobile phone plan to suit you.

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