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Cellular phone service contracts contain terms and conditions for using the phone service. These contracts are created in accordance with state and federal laws. Cellular phone service contracts generally cover all areas of phone use such as coverage, terms, services available, and fee for services. These contracts are mandatory when you select a post-paid or discount cellular plan with monthly installments.

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There are both prepaid and postpaid cellular service plans. The prepaid cell phone plan is ideal for customers who want a small amount of minutes per month. It is beneficial to know the advantage and disadvantage of prepaid and postpaid plans. The prepaid plan does not have any deposit, monthly rental, termination fee or service fee. But the calls and SMS are more expensive in prepaid plans than in postpaid plans. Normally, users need to pay for both incoming and outgoing calls.