Do You Know the Difference in Contracted Cell Phones vs Non Contracted Cell

The sales rep tried to talk me out of a non-contract phone, saying that when the networks are overwhelmed with calls, they drop the non-contract phone's calls first. The biggest catch is that you pay more for the phone because the monthly fee is lower, but over time you save money. If you decide to switch, there's no cancellation fee.

I've been on the Virgin Mobile non-contract plan for a year and a half now, and I really haven't noticed a problem with dropped calls, but I mostly use the cell phone for texting, apps, and some internet. Virgin Mobile's customer service is awful, so the two times I've had to contact them have been terrible waits, but overall I think it's worth it. Don't switch near the weekend if you want to keep your same number, because you may not have service for a day or two while they port your number, and I had a little trouble with activating my new phone (because the sales rep set it up under a new number, I couldn't activate it myself online and keep my old number). I upgraded to the iPhone 4s several months ago, and I love it. I was paying $35 a month at first, but since I've been with them for over a year and I have the payments automatically charged to my credit card, my bill is now $30 per month. That's with unlimited texting and internet, and I've never had a problem with them charging me for going over when they shouldn't have. Do you know any other carriers where you can get an iPhone with unlimited texting and internet for $30/month? None that I'm aware of. So for me, Virgin Mobile is worth the savings even with the less than stellar customer service. I am also in a major metropolitan area most of the time; I don't know what kind of service I'd have in a rural area.

We switched to Straight Talk, a no contract option, about six months ago. We get unlimited talk, text and data for my husband and I and save over $40/month compared to the AT&T plan we had before, which limited texts and data. Our coverage actually improved when we switched, and we haven't had problems, so haven't had to deal with customer service.

If there is a catch I haven't seen it yet.

The only catch is that the nicer phones are more expensive upfront, with a prepaid plan. Prepaid plans are a lot cheaper than contract plans, with the same coverage, often provided by same large carriers that do contract plans.

I bought my LG Optimus over a year ago during a sale on Virgin's website. I think I paid maybe $65.00 or so. I found a coupon code that also lowered the price. It's not a feature heavy IPhone (which is TOO much for me), but it does what you want a Smartphone to do - navigation, touchscreen, etc. If you are not into the latest & greatest, then you should be fine with a prepaid plan.

I have a Virgin Mobile pay-as-you-go plan and I LOVE it!

Yes, you do have to pay more for the phone up front, but you don't have to get anything really fancy or expensive. Sure, they have the OMGWTH iPhone at the hefty price, but I think there are about 20 to choose from now.

I originally got my LG Optimus V smartphone at Target (it was cheaper than Walmart) two years ago and I think it was $149. I pay only $25/month for an unlimited data/texting plan plus 300 minutes - the rate has gone up to $35/month but I was 'grandfathered in' with the old price when the change was made, something I thought was really nice for a no contract plan.

I don't think there is a store to go to, but I haven't had any problems with customer service. I transferred my old number over from my previous ATT contract.

As a no contract, CHEAP plan, I couldn't be happier!

I have never had a mobile contract, have been with virgin mobile for years. Now I don't need data, but their call quality and coverage isn't any different than DH's Sprint plan.

The appeal of a contract phone for DH was that you get the phone itself (he has a fancy smartphone) for "free" if you sign the 2 year contract. Yes, that is shortsighted, since the contract works out to something like $2000 over two years, but you didn't have to front the $600 for your fancy smartphone. Also appealing is that you can get "upgrade" your phone after a year and a half or so (if you entend your contract) and for someone who likes having the latest gadgets, that is appealing.

The only caveat I would say is that not all carriers support all models of phones... so if you have your heart set on a certain model, or want to keep one that you currently own you just have to pick a carrier that supports it.

So no, no catch.
Good luck.

Oh and after your SWH: Virgin does not have a store where I live (I don't know that they have any stores, but maybe they do...). I just dealt with them for switching our home phone number to my cell from Vonage. It was a bit complicated, but their customer service (over the phone) was very helpful and friendly and did a good job to facilitate the switch.

I was wondering the same thing. Since I'm going to split my phone contract from our family plan I've been looking at leaving AT&T but want to keep my iPhone. Good to know Virgin Mobile accepts iPhones. $30/month is awesome.

My husband and I wondered the same thing. The price of Straighttalk was very appealing and we assumed there must be a catch. We checked reviews online and asked Walmart sales associates what they had heard and the general feedback had been positive. I heard all good reviews. The online reviews were typically negative about their customer service. Finally we decided the only way to find out was to try it for ourselves.

We switched at the end of November and have stayed with them since. As for customer service, I have even created my own problems where I had to contact them and everything has always been resolved to my level of satisfaction. We are now going into month 5 and I have no complaints.

Now what I did learn is that Straighttalk runs off of the T-Mobile, Sprint, AT&T, and Verizon network. Depending on what phone you buy determines whose network you are on. You will definitely want to chose your phone based on your network preference and who provides the best coverage in your area.

Finally I wanted to say that when I was researching the prepaid plans it appears that their Go Phone's network is not as encompassing as their contract network. A Verizon Wireless representative had told me the same thing about their prepaid line. I don't believe this is the case with Straighttalk so I am not sure how or why Straighttalk sells their service and networks for less. Unless you're a huge data user I don't see the difference.

Non-contract phones... are, non-contract phones.
Meaning, you are not on a contract, with it.
Meaning, when you buy it, you are not stuck... with it for 2 years, under contract, before or if, you want to buy another phone for whatever reason, or want to change your plan.

It is typically, pay as you go.
BUT you can also have, a non-contract phone, that is you put on, your existing contract and have the same rates, as on your existing contract.
But you do not have to do the pay as you go, type thing.

We have AT&T.
We have a family plan contract.
My cell phone recently broke.
We are past the 2 year contract contract. So thus, I could then go and buy another phone or upgrade to another one. I could have, bought a new cell phone, which is a "contract" phone (ie: once I bought that type, I would then have to pay for another 2 year contract and be stuck with this phone for another 2 years even if I wanted to change my phone and buy another one). OR.... I could buy a non-contract phone, pay as you go type, and thus, I do NOT have to be stuck with it for 2 years because it is a non-contract phone).
So, what did I do?
I bought, a NON-contract phone.
And I can change phones anytime, since it is a non-contract phone. BUT we added on this phone to our existing contract. Because we have a family plan. BUT, I did not have to pay.... for another 2 year contract. Because it is a non-contract phone. So, NO contract is required... in order to buy, this phone.
Many Tourists, come here and buy these non-contract phones too.
Because it is convenient and requires, NO contract to buy it.
And you can also, purchase different monetary amount cards, to pay as you go. And refill that card, as needed. Each card having a different monetary amount on it, and minutes etc.

If you buy a non-contract phone from a store, a store typically sells ALL brands. So you just buy the brand/cell phone provider that you already have or want to have. And then, your SIM card, will need to be put into the new phone. And so that you STILL have your existing phone number... even if it is in another new phone.

AT&T corporate stores....has MANY types/styles of non-contract phones.
Versus if you go to just a retail store, who is authorized to sell, AT&T phones, you may not have as much variety to choose from.
For example.

My non-contract phone was not expensive. It was only $29.99.
And it is a GOOD cute phone which is rated well as well. I researched it.

Just go to a store, and buy a phone from a carrier that you want...that is the same as the carrier you have currently. Then you do NOT have to be concerned with buying an unlocked phone or not and paying for it and the SIM card problem.

With non-contract phones, of course you are still paying something monthly. Using any phone, means you pay monthly. BUT with a non-contract phone, it is under no contract. You are not stuck with the phone or the plan, for 2 years. It is pay as you go. Pay as you go for as much as you use it or not, and for as much as you may text or not.
YOU determine... how much you pay, each month, and can purchase those cards with different denominations on it. Depending on what YOU want to spend each month.

I have the AT&T Go Phone. Non-Contract. I STILL have their service and coverage and etc. Because, it is an AT&T phone and they are the provider.
There is no catch.

A contract phone is just that. When you buy the phone, you ALSO THEN HAVE TO, pay for a contract on top of that. And then you are locked in....into that contract for 2 years. With that same phone... and the same plan rate.
But with a Non-contract phone, you do NOT have to pay for a contract, on top of the phone you buy. And you pay as you go, monthly, per the monetary denomination you want and per the minutes you think you need etc.

Now, per the AT&T non-contract pay as you go phones (since that is what I have and know), the phone comes with a chip, which can be put into the phone, or not. And this may be for like $50/month type chip etc. and it may then have a different cell phone number. OR, you can, simply put this phone on your existing plan/contract, and put your existing chip/SIM card in this phone, and have the same phone number. But you do not then have to purchase, ANOTHER contract, on top of that, when you buy the new phone.
I know its confusing, but hope this makes sense.
The AT&T customer service people, are very good at explaining this.
Just ask questions, before buying.

Either way, you can only ditch your existing contract/phone, if you have past the contract date. And then switch, or keep your existing plan, at its existing rates. ie: our AT&T family plan contract, we got years ago. And AT&T currently, does NOT have those same rates or plans, like it did years ago. Their data plan/family plans, now cost more. IF there is a phone on it that needs a data plan. For example.

With a contract or non-contract phone, yes, you will still be paying something each month. But it depends on, IF you get a contracted plan, or if you get a non-contract plan and non-contract phone. The monthly costs, differ. No matter what, a user has to pay something each month for using the provider's service.

Another example: My Mom, might go with a non-contract phone and plan now. Why? Because, she hardly uses her cell phone and does not need a data plan. Thus, going with a non-contract phone and plan, is cheaper for her. Versus being on a contract and being locked in for 2 years at that contract price. And she can now get a new cell phone because she has past the 2 year contract of her current cell phone. So she wants to get a new phone in which she will not have to then purchase ANOTHER contract on top of the cell phone price.
Pay as you go non-contract phones, can cost from $10 a month to more. Depending on your usage and if/when you text. Texting with a non-contract AT&T phone, is about .25 cents per text. For example.
And, if you don't need a data plan, then don't get a smart phone. That will be cheaper.... per the cost of the phone and in monthly costs/minutes costs.

You have pretty good explanations about contract vs non-contract, so I won't talk about that.

however, in your post you also discuss *unlocked phones*.... that is a whole different issue.

I have never had an "unlocked" phone (and now that other carriers can sell iPhones it not that much of an issue) but I know several friends who had an unlocked iPhone when only AT&T carried them, but the wanted to have an iPhone and a different carrier..... if you buy an unlocked phone and get service from a non-sanctioned retailer.... for example buying an unlocked iPhone and getting service through Virgin (who doesn't sell or support the iPhone) -

You won't get ANY of the OS updates. You won't get any of the security patches etc. So, unless you are tech saavy you will be stuck with a phone that never gets updated. In order to do the update you have to be able to get the update from the internet and run it on your phone.... rather than having it magically "appear" and being user friendly.
you also have to know WHAT updates to install etc etc.