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im tom church from latest deals and today im going to talk all about mobile phone contracts any type of contract can sound intimidating and its important to fully understand everything before signing up a mobile phone contract is when you pay a fixed monthly fee for a certain period of time usually between one to three years but you can get some rolling monthly contracts too in return youll receive a monthly allowance of calls texts and internet data if you pick a phone contract youll get a handset too how do these contracts work with a mobile phone contract you will pay a set amount of calls texts and data each month if you exceed your allowance these extra charges will just be added to your bill at the end of the month if you have a contract phone you will also be paying for the cost of your handset on top of your allowance each month so what are the different types of mobile phone contracts one of the most common mobile phone contracts is the type that comes with a free handse