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Selecting a mobile phone plan is a tedious job and often customers get confused by the huge number and variety of plans that companies offer and it is often difficult to select which one to buy. There are literally hundred of plans, and these plans with their complex offerings become very difficult for consumers to compare with regard to their cost effectiveness. You need to do a thorough research in order to arrive at a decision that is most appropriate and cost effective as per your needs. Mobile phone companies call their plan with varied names but they are generally categorized in these three heads, namely pre paid plan, pay as you go plan and fixed term contract.

In a pre paid plan, you pay for calls in advance and when you exhaust your allocated calls, you have to top up your account so that your phone keeps on working. The greatest advantage of this plan is that you know what your account limit is and there is no billing surprises. It is ideal for those people who do not make frequent call from their mobile phone and use it only during emergencies. The disadvantage attached to the plan is that the rate of call is higher in comparison to other two plans.

In pay as you go plans without a fixed term contract, you get the bill of your mobile phone at the end of the month in accordance to the usage. The plus point of this plan is that you will not be attached by any contract for the duration up to which you have to be tied to the company or its plan, and you can change the service at any point of time for which you’ll not be charged any penalty. But, the greatest flaw of the pay as you go plans is that you will not come to know about your bill until you receive it. In a fixed rate tem plan, customers get into a contract with the company where the customer is obliged to take the service till a specified time. Its call charges are cheaper than the above two plans and is ideal for people who can be categorized as heavy users.