Other bills or contracts

Phone

Although not necessarily considered to be a utility, most people have a mobile phone or a landline.

Three different types of phones - A) Landline, B) Mobile - contract, and C) Mobile - pay as you go

Landline phone bill

A landline phone bill usually has two main elements:

  • the cost of the units used
  • line rental

There are further optional features that can be chosen, eg caller recognition, call barring.

Mobile phone - contract

Purchasing a mobile phone on contract means that you agree to pay a monthly bill for a set amount of time, eg a year.

Signing up to a contract will give you a set amount of calling minutes, text messages and data per month. There are usually charges for exceeding your allocated minutes, text messages and data.

Mobile phone - 'pay as you go'

With this type of plan you pay for only the units that you use. The unit costs are usually higher than a contract mobile but there aren't any fixed monthly fees.

Question

Carmel is considering getting a mobile phone on contract. She has chosen three possible companies that offer good mobile reception in her home town.

She works out that she needs approximately {750} calling minutes and {2,500} texts a month. At the moment she makes very little use of her data allowance. Use the information below to choose the best company and tariff for Carmel.

Table showing three different options given by three different companies for a mobile phone contract.

Carmel needs {750} minutes and {2,500} texts. Here are the suitable options for her:

Company A - Option {3} at \pounds{27} per month

Company B - Option {2} ( \pounds{23}) and option {3} ( \pounds{28})

Company C - Option {3} ( \pounds{22.30})

The cheapest contract that suits Carmel is offered by company C, at \pounds{22.30} per month.