Mobile phones have pretty much become an essential accessory of modern life, and this is reflected in the large range of devices on offer in the ever-expanding market.  If you have already done your research, and have an idea of the model that would best suit your needs, the next choice you face is of crucial significance in determining the overall cost of your new mobile phone: will you take a contract out, or opt for pay as you go?

Pay as you go avoids having to make the usual minimum commitment required by a contract, typically a period of 12 months +, and so can be the sensible option for those with tight finances.  However, the range of phones offered on a pay as you go basis is more limited than those offered on a contract basis.  Additionally, and perhaps most importantly, the size of the subsidy offered by the service provider on the cost of the handset is much smaller – so the initial outlay for the handset will be higher.

Services providers like Vodafone heavily subsidise the cost of mobile phones for contract customers, for the obvious reason of securing business for their core commercial purpose of providing a mobile phone network.  Premium contracts often come with one of the latest smartphone handsets for free. For example, Vodafone offer the new iPhone 3GS for free when you take out a contract with them. Contracts can be the best value for money if you are a fairly heavy mobile phone user, and can make the acquisition of top-end smart phones more affordable, a great deal for the savvy mobile user.

A third option open to those who already have a mobile phone is to simply keep your sim card, and buy a phone outright.  Combined with a pay as you go package, this can be the cheapest option overall for moderate to light users, and if you enter the second hand market, you can find the cheapest handsets.

The bottom line in determining the cheapest route when selecting mobile phones is to have a clear idea of your usage.  With a fairly accurate handle on this information, you will be able to select the tariff or package that is most economical to you; so trawl through old bills and do some number crunching if you have to – a little research now can save a significant sum in the long run.

I live in Virginia and I’m looking for a plan for a single phone where it’s the cheapest to recieve phone calls from abroad and within states.

Please help me

I don’t know of US Cellular is in your area, but almost all of their plans include "Free Incoming". All calls made to you from anywhere do not count against your minutes. I don’t think any of the "big" companies have this feature in their monthly plans (unless you have unlimited, of course) but check with some of your local or regional providers (Not AT&T, Sprint, Verizon, T-Mobile) to see what they offer.

I need to call many people. Where can I find cheap international phone calls?

You can try

http://voipsms.blogspot.com