Plan types

Phone plans fall into two main categories: monthly account and pre-paid plans. Think about how you'll mostly use your phone, as this influences the type of plan that will best suit your needs.

Monthly account plans

• Monthly account plans are most suited to people who use their phones often and make calls rather than sending texts.
• The most common monthly plans charge a fixed fee every month. This allows a certain number of "free minutes" during peak or off-peak times, after which you pay per minute.
• On some plans you will be able to add “packages” of free text messages, pixts and mobile data for an extra charge.
• Many monthly account plans require you sign up for a 12, 24 or 36 month term. They may also come with special deals such as free or discounted phones. These plans can lock you in to one provider, pricing plan and phone for a long time. Given the rapidly changing nature of the mobile market a shorter tem is preferable.

Pre-paid plans

• Pre-paid plans are a good choice for people whose main use of the phone is for texts. They are also good for parents who want to control their children's usage, or as an emergency-only service.
• "Credit" is paid in advance onto your phone, and topped up when it's running low. Topping up is via credit card online or by phone, with top-up cards from retail outlets, or by money transfer via certain ATMs.
• There is no long-term contract, and the only restriction is having to top up by a minimum amount once a year.
• Telecom offers One Bill plans which are effectively pre-paid plans that are charged to your home phone account. If you use a phone infrequently, say for emergencies, then this option may be worth looking at.