Why you should never sign another cellphone contract

If you want to save money and take advantage of new technology coming down the pike, there’s just one thing to remember: Never sign a contract again.

If you read the business papers, you’ll see the big story is Verizon Wireless buying Vodafone for $130 billion. Depending on whose numbers you believe, this is either the first or second largest business deal ever done in the history of capitalism. It’s giant.

Verizon knows the position of incumbents like themselves and AT&T is getting weaker by the day. Yet they also believe we’re going from 102% wireless penetration — which means more than one wireless device active for every person in the U.S. — to 500% penetration. That means 5 devices per person in America!

So they see a much larger market and want a piece of it. I think they’re right. So do others in corporate America. You have Microsoft buying Nokia for $7 billion in an effort to become a mobile-oriented company. And then you have Amazon testing its own wireless network to offer own wireless network, according to Bloomberg.

Then you have all the price cutting on handsets happening. The cost of expensive mobile devices is about to get cheaper as Walmart rolls back the price on iPhones and iPads.

I have signed my last cell phone contract. I can’t foresee another time when I will ever sign another contract for my wireless service again.

So how is this all relevant to you? If it’s been more than a year since you got on your current plan, there’s a near 99% certainty that you’re overpaying. It’s time to shop again.

But again, be careful with signing contracts in an industry that 2 years from now things will be so different. The $10 month monthly plan that I’ve long talked about will be part of the future as soon as next year!