- What is a postpaid plan?
- Why choose a postpaid plan?
- What are the disadvantages of postpaid plans?
- Do you need to bundle a smartphone?
- How do you compare postpaid plans?
What is a postpaid plan?Postpaid plans do not require a monthly payment, but the payment is required after the specific period, which is usually a month. The amount is often a monthly charge plus any additional fees you incurred during that period.
These plans often work on an accrual basis in which there is a predetermined value of calls, texts and data. If you go over the limits set, you will have to pay an additional fee. These plans are typically offered on a month-by-month basis, or through a 12 or 24-month basis. The specifics of each contract varies based on your needs and the plan you choose with the provider.
Why choose a postpaid plan?One of the biggest benefits of a postpaid plan is the ability to bundle the purchase of your smartphone with your phone plan and pay it off during the term of your phone contract.
Most providers will include the retail price of the phone when you sign a new contract. As long as your using their service, if you want a nice, new phone you do not have to worry about putting that money out up front.
Therefore, a contract will allow you to spread the cost of the new handset over a period of time rather than having to pay the cash upfront. However, it is important to weigh your options because this could end up costing you more over time.
Any additional use that is not included in your contract is added to your account and must be paid at the end of the term. With a postpaid plan you do not have to worry about running out of credit each month like with a prepaid plan.
If you are a heavy phone user, the postpaid plan is the best option. With these plans you often get more value for your money than you would with a prepaid plan.
What are the disadvantages of postpaid plans?With a postpaid plan you are responsible for the cost of the contract even if the phone is lost or broken. Even if you are not using the handset, you will still have to pay for the service. If this happens you need to get another phone.
If you are in a two-year contract you might find that upgrading to a newer phone is a little difficult.
If you are going over your quota you might not get a warning right away. This means you might receive a higher bill than expected.
Data costs with contract plans are often a little better than prepaid plans. However, it is important that you compare the cost of a contract versus buying the phone outright on a prepaid plan. Our mobile phone plan finder at comparemyrates.com.au can help you get the best plan for your needs.
Do you need to bundle a smartphone?In short, the answer is no. There are many SIM-only plans that have the same contractual options as postpaid plans, but do not include a new handset repayment.
How do you compare postpaid plans?
- Contract cost - Of course the cost of your plan is important. The monthly charge is often specified in the contract, but you also want to compare the minimum full contract cost. If you find that you can get a smartphone and a cheaper prepaid plan, that might be the best route to go.
- Included extras - Most postpaid plan providers offer bonuses to help tempt you, such as music streaming subscriptions, bundled international calling provisions or frequent flyer points. These could be beneficial to you based on your lifestyle, and is something worth considering.
- Data charging - Most plans are now offering “unlimited” call and text plans. Data is often what makes a difference when choosing your plans. If you use your smartphone often you can choose a plan with a lot of data. However, you want to make sure your provider counts data charges per KB block. Comparemyrates.com.au can help you choose the best data plan.
- Network coverage - There are many postpaid providers, but they all use Telstra, Optus and Vodafone. However, not all of the providers have coverage in all areas. Network coverage maps can give you a good gauge on the coverage in your area. This can help you determine which provider is best for you.
- Roaming costs - If you travel often you want to take roaming costs into consideration. See if you can purchase international calls, texts or data packages to prevent the extreme costs of roaming charges. Since the postpaid plan accrues costs based on your usage, you do not want to see a large bill once you return from your traveling.
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