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In order to obtain a cell phone and service, phone hardware must be purchased in addition to a subscription to some type of service plan. A consumer has the choice to either buy a phone directly from one of the cellular service companies, or they can buy a phone from an external retailer or other source, and then have it activated with a service plan from one of the service providers. It would be beneficial to analyze cost before deciding on either of these options, and it is commonly known that the major cellular service companies often subsidize their phones as part of their service plans, offering the phone hardware at a very low price to those who initiate some type of service agreement.

Independent cellular retailer businesses are presented an incentive to sell service contracts from their supplier cellular company. These incentives are in the form of rebates. This means that when a retailer sells a mobile phone in conjunction with a
service plan from their supplier company, they are issued a rebate, thus making more profit from the sale. This method is a way for the major cellular providers to stimulate more people to subscribe to their network. The pricing difference between a mobile phone sold by itself, and one sold accompanied with a service plan, can be quite significant. A consumer may turn to a number of sources in order to obtain a phone and service. If it is desired to purchase directly from a cellular service company, then local retail branches for every cellular company are available for walk-in customers who want to do business in person. Another way to order is through a cellular company website, which are made available for access on the internet for people to shop and purchase phones and service via computer.

Alternatively, you may choose to buy your phone separately, and there are many independent cellular phone retailers available on the web and in walk-in retail stores. Sometimes they too offer special deals on phones and rare phones that aren't even offered by the major cellular providers. If you don't want to initially be tied down by a service contract with a cellular service company, then buying your phone from an external retailer or other source may be your best bet.

A New Cellular Subscription vs. an Existing Transfer

Cellular service companies are constantly trying to attract new customers who have not previously subscribed to cellular service. Naturally, they extend their best deals to brand new customers in order to gain the new business. New customers are offered incentives and benefits such as free phones and better rate plans. If you already have a cellular service contract and you want to transfer to another provider, then you would qualify for a better deal after you let your existing contract expire. Your status as a new customer would ensure a good deal with your chosen provider.

What to Know

Before making a lasting decision regarding mobile phone service, take the time to review what the current market has to offer, not only in terms of cutting-edge hardware, but specialized service structure as well. Being knowledgeable about the buying process, features, coverage, service sources and plan structure will ensure that you as a consumer are satisfied with your mobile communications in the long run.

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