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Difference between Unlocked vs. No-Contract Phones

Difference between Unlocked vs. No-Contract Phones

We all know what a cell phone is but for purpose of doubt, A cell phone is actually a wireless electronic device that is mostly used to make phone calls, also most recent cell phones can be employed for multimedia communication. These phones receive their service from cell phone towers that provide connection to a cellular phone network, and they can be utilized for both indoor and outdoor use. 


However most phones purchases are directly from the manufacturer, while in some cases phones may be purchased as a contract phones which could be explained as part of a cell phone service contract from a service provider. 
Difference between Unlocked vs. No-Contract Cell Phones


A no Contract phones come with many benefits with some attached rules, unlike locking yourself into a (new) two-year plan commitment with your cell phone service provider. At first glance, it may look like the handset will be more expensive than what you’re used to seeing aggressively advertised by wireless carriers; that’s because carriers subsidize the cost of the handset when you commit to a long-term contract and recoup the cost of discounted phones over the course of the plan commitment.
No-contract phones aren’t subsidized by the service provider, but can be a much better deal if you don’t want to be locked into an expensive wireless plan.
A no-contract phone is great if you aren’t eligible for an upgrade yet but need a new phone (whether you just want the latest and greatest or your phone broke and is beyond repair), or if you want to switch to a cheaper month-to-month plan that doesn’t come with a phone discount.
Today most advanced cell phones are called smartphones and come mainly as contract phones and are capable of multimedia access, including Internet and email access in addition to the more standard features found in basic phones. 

The differences between prepaid and contract phones, lies with the service providers of each package.

An unlocked phone is a phone that can be used with any other GSM service provider, such as AT&T or T-Mobile. With an unlocked phone, you simply change the SIM cards when you’re ready to swap cell phones companies.
Unlocked phones are more expensive than carrier-locked phones. Before you decide you want to go “unlocked”, consider whether a no-contract phone could suit your needs just as well.
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