Things to Know About Mobile Phone Contracts

9/6/2011

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It’s back to school time, and there are deals on cell phones and plans everywhere. You are going to spend a lot of money for mobile phone service no matter how you slice it, but with contractual complexities, you might end up paying far more than you intended. Here are some items to consider before getting yourself knee-deep into a mobile phone disaster.

You will have to pay for device activation. If you are getting a new phone, whether you are a new or existing customer with the company, you will have to pay to activate the device—typically a charge of around $30. This is a fee which generally doesn’t come up in sales conversations until the last possible moment, so be aware beforehand, though it is occasionally waived as part of a promotion.

Ending your contract before it expires is expensive. Make sure the contract you are signing is what you want, from the telecommunications company you want. If you wish to cancel your contract, it will cost you in the form of a fee for early termination. This is generally $100 or $20/month remaining on the contract up to $400, whichever is greater. There may also be an extra fee if you are cancelling a smartphone contract that has a data plan. These figures are very approximate—read your contract thoroughly. However, there is one case in which you are able to leave the contract: if the provider decides to change the terms of the contract, they are obligated to inform you, and at that point you are free to walk away.

You own your phone number. While this is not cost related, it allows for a little less hassle: if you currently have a cell phone plan with one provider, and intend to move to a different one, you can arrange to transfer, or “port”, your number. The only caveat here is that you must have your first account active until the number is moved, because as soon as the account is cancelled, the number disappears.

Ensure you check the provider’s Business Report at mwco.bbb.org. If you have any problems with billing, you may need to do no more than call the company’s customer service. However, if that fails, you can submit a complaint at the website above, and also with the Commissioner for Complaints for Telecommunications Services via www.ccts-cprst.ca/complaints/service-providers.

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