Gadgets, Lifehacks, Tech

Why Are Phone Contract Prices So High?

As advanced as smartphones are getting, they don’t seem to be getting much cheaper. Yes, there are outliers and exceptions to this trend – like the OnePlus Five which gives you a bit of exceptional power for your cash – but for the most part, phones are pretty expensive. To own that pocket piece of power, you’re looking at spending over five-hundred bucks for the right to own it – then you need to find a supplier to provide you with airtime and data, which is going to be a monthly setback for the privilege of using that sim card. Phone ownership is a pretty costly deal.

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That’s without speaking about contracts and bundles. To own the latest piece of phone hardware, you’re going to need to sign up with a network and that’s not cheap at all. You’re looking at upfront costs, operating costs and monthly fees. This is all pretty expensive, especially if you live in the US. There are plenty of factors at play when it comes to the price of phone contracts.

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Why are they so expensive? It could be because the country you live in is big. A phone operator needs to provide service so you can use the phone – and this means it needs the infrastructure in place to provide that service. It does not come for free. These cell towers repeat around every 25 miles, and the bigger the country – the more towers will be needed. If your country is huge, you’ll pay more, just so your provider can actually work. This isn’t the only reason though – companies need to make profit, so if costs are high, prices will be too – and a company will look to squeeze as much money out of you as possible, simply because a phone is a necessity. The industry of phones is very greedy indeed, but it makes a lot of money and shows no signs of slowing down. If you want the latest and greatest, you’re going to have to pay for it.

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How can you combat this? You can negotiate a deal with a provider, but you won’t have much success usually. They know that you need a phone and you won’t have much bargaining power unless you’ve been a customer with them for years. Unfortunately, you won’t have much luck here unless you can persuade a network, but that will take some doing. Other than that, you’ll have to order an unlocked phone and choose your own supplier. It’s a bit more work, but it could save you money, and it gives you some options. Sites like are great for this. You’ll certainly find the phone you wanted for a good deal, unless it’s a network exclusive.   

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Because of a lack of competition, because of high costs and because of greed. That’s why contracts are so expensive, but you’re not powerless. Unless you’re a complete slave to consumerism, there’s no reason to buy into pricey contracts. Keep the power with you and shop wisely.

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