While mobile phones can be purchased without purchasing a service plan, only the service plan will allow you to benefit from the many features the mobile phone offers. These service plans -- or service contracts -- require the consumer to remain a member of the service provider for a set amount of time. A credit card and credit check are required to activate a service plan. Typically, those who cancel their service contract early will be faced with early termination fees. However, consumers may also purchase prepaid phones. Prepaid phones allow you to purchase minutes in advance. Once these minutes run out, the consumer must purchase more to keep using her phone. Prices can vary depending on the type of prepaid phone you purchase. For example, some prepaid phones contain unlimited text, talk and data. These phones generally cost more than those that only allow you to talk.
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