Contract instead of prepaid – why mobile phone contracts are still popular

Hardly any other industry has experienced such a massive change in recent years as the mobile communications industry. This is not surprising, because with the advent of the smartphone and the widespread availability of mobile internet, the way we communicate and consume has changed forever. One of the biggest changes can be seen in the use of prepaid tariffs and contracts.
While we used to have to rely on a contract for many services, options such as flat rates are now also available for prepaid tariffs. Regardless of this, cell phone contracts are still very popular. But why?

Easier financing of high-quality smartphones

When it comes to subsidizing a new smartphone, contracts are the first choice for many consumers. That was the case in the past and has not changed to this day. From a certain age, anyone can sign a mobile phone contract with a smartphone and enjoy two advantages.
On the one hand, you get the device at a reduced price, and on the other hand, you can pay it off in installments. The installments are usually not tied to interest, but are tied to a minimum term.

Some mobile phone providers do not even charge a connection fee when signing a contract.

Tariffs with generous data volumes

For most people, neither prepaid tariffs nor contracts provide a flat rate for SMS and telephone calls. After all, everything takes place in the world of the internet these days. We use maps for orientation, messaging for communication and streaming for entertainment. The focus is therefore clearly on how much data volume is needed.
Most cheap prepaid tariffs only offer small data volumes. If these are used up, the speed is greatly reduced. Unless a flat rate is chosen, the data volume of contracts is also limited. However, it is common for mobile phone providers to offer significantly higher data volumes for their contracts. Often, the significantly larger data packages are not much more expensive either.

Comfort and planability

Those who want to keep an eye on their finances often opt for a mobile phone contract. This is not surprising, as this is associated with good planning. We can be sure that the monthly costs remain fixed and predictable. In general, this is also possible with prepaid tariffs. However, the costs usually vary more depending on the intensity of use, especially the data volume.
Even if the included data volume suddenly runs out, you can usually top up your data at a reasonable price. In terms of convenience, contracts are the better choice anyway, as you don't have to keep topping up your credit.

Prioritization of support requests

Whether users of mobile phone contracts are really prioritized by their mobile phone provider over users of prepaid tariffs cannot be clearly answered, at least in Germany. However, it can be assumed that they will receive faster support if problems arise. This is particularly beneficial for people who use their smartphones also or exclusively for professional reasons.

If problems arise, it is more than annoying if the mobile phone provider does not respond immediately.

For this and other reasons, companies often decide against prepaid tariffs and prefer to sign a contract.

Additional bonuses such as subscriptions to popular apps

A life without a smartphone is unimaginable for most people. This is understandable, because apps are not just for entertainment, but also help with everyday challenges. Mobile phone providers are aware of this, which is why they often offer additional incentives in addition to their basic services.
These incentives are usually bonuses such as subscriptions to popular apps such as popular streaming services or cloud computing platforms.