Depending on your personal preferences and needs, you select a mobile phone plan. People prefer contract mobile phones as they bring along a lot of attractive offers with them. But what are actually contract mobile phones? Some people are not even aware of what they mean and simply buy them because they get a lot of money saving options with them. As the name says, contract mobile phones actually want you to sign a contract and pay a particular amount of money as security. There is a fixed monthly rent that you have to pay plus the bill for the calls you make and the services you avail. At the end of the month you will receive a bill containing a report on the calls you made and you have to pay off the bill within a fixed time period. If you don't pay the bill within the specified time, you may have to pay a small extra amount as penalty.
So if you have the habit of talking quite a lot on your mobile phone, contract mobile phones are for you. While choosing a cell phone plan, you need to think carefully about how much you'll actually be using your phone.
Source : http://www.articlesbase.com