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Three reasons: 1. Money 2. More money 3. Not losing money In the beginning, it was simply a source of revenue if a customer decided to cancel their contract- greed. (That part is my opinion) Here's the logical answer: These days, with all the competition, it's a way for the companies to recoupe the cost of that "free" or reduced phone that came with the sign-up. They reduce the cost of a desireable phone in order to get subscribers (i.e. Razor or Slivr for $80 instead of $200+). Note that when you cancel a contract, you are required to pay a relatively large amount of money. This ensures that they did not lose money by reducing the cost of the phone. Should you stay with them for the life of the contract, the companies have made enough revenue from you to pay for the phone and make a profit.
What else can I help you with?
Do no contract phones require a monthly bill?
usually when you have a no contract phone you do not have to pay a monthly bill you pay as you go, like a pre-paid cell phone, but now a days these phone companies are making phones that are no contract where you pay like $50/ month.
Which phone companies offer no contract cell phones?
The best cell phone companies that allow you to use their cell phone service without signing a contract are Wind and Koodo. They allow you to use their services on a monthly basis without getting into a long term commitment.
Where's the best place to look for a cell phone service that doesn't require a contract?
There are numerous providers who do not require contracts. JitterBug and Boost mobile are both providers who do not require that you sign a contract. Both companies also offer pre-paid monthly packages as well.
Why do cell phone companies give away free phones?
Cell phone companies give away free cell phones in order to get you to sign a two year contract with them. By giving you a phone, you pledge to pay them money for the next two years.
How much is a good cell phone on average?
On average, a top of the line cell phone with touch screen and a smart phone will be about $700. However, most companies will discount the phone with a 2-year contract.
What companies offer cell phone plans without a contract?
The names of companies that offer cell phone plans without a contract will vary from country to country. Some companies in North America that offer these phones without a plan are Wind, Cricket and T-Mobile.
Where can I go to find the cheapest cell phone plans for me and my family?
www.wisegeek.com/ offers a thorough look at different cell phone plans. as well as reveiws for the many cell phones and services available. T-Mobile offers the best plans that do not require a locked in contract. They also do offer plans that require a contract.
Figuring Out Where to Get Cell Phone Plans Cheap?
Have you been able to find cell phone plans cheap? This can be exciting for any person who has grown tired of a phone plan that they have had for awhile and has decided to switch phone companies. Make sure that you can afford the fee for breaking your current phone's contract, if you have a contract for the phone.
What is a renewable contract?
A renewable contract is a contract that can be renewed at the end of the contract term. Some businesses, such as cable companies and cell phone providers offer clients automatic renewal contracts.
How to buy a phone at The Cell Phone Shop?
Have you wanted to buy a phone from The Cell Phone Shop for a long time? Prices of different phones can vary based on what type of contract you want to buy with them. Many cell phone companies want their customers to enter into a long and expensive contract in order to ensure that they stay with the company for awhile.
What was the pice of an cell phone in 1997?
Generally they were free with a contract then phone companies worked out new models could be sold
Where is it possible to find a good cell phone that has no contract?
Most of the major companies like Sprint and AT&T, have an inexpensive selection of cell phones that allow you to have a contract on a pay-as-you-go basis.
