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Hi there, Alex Kidman from Finder.com.au talking to you today about the difference between a prepaid and a contract mobile phone plan. Now in both cases, youre actually going to be signing up for a mobile phone contract. Theres still a certain amount of paperwork to do, youve got to identify yourself, and you are committing to a certain quantity of spend. The key difference between these two types of contract however, is in the way that you pay. Typically, these days youll get unlimited calls and texts, but youll also get a data quota. Once youve used that data quota up on a prepaid plan, thats it, no more data, unless you buy some more. On a contract plan, however, you can go into excess usage. And this will typically attract a price of $10 per gigabyte or part thereof you use, over whatever the quota on your plan is. Now, there are benefits to both arrangement. Obviously prepaid allows you to control your mobile spend more discretely, because you can never spend over what you
