Capped Contracts Guide

Are you tired of being hit with an overage fee each month? Do you or someone on your plan have trouble keeping track of how much data you have used that month? If so, you may be interested in getting a capped contract. Capped contracts are a somewhat drastic move, but if you don’t want to pay the hefty fee any longer, it may be a good option for you.

With most mobile phone contracts, you sign up to receive a handset along with access to their data network. The data network allows you to connect to the internet so you can do things like check Facebook or get driving directions. Any time you connect to the internet, provided you are not connected to a WiFi network, you will use your mobile companies data network. If every one of their customers connected to the data network as much as they pleased, mobile companies would soon have overloaded networks. The connections would slow down for everyone, and it would cause them some problems. To keep this from happening (and let’s be honest, to make more money) most mobile companies put a cap on how much data you can download from their network during a billing period. This limits how often people will connect to the network, and therefore keeps their networks from overloading.

The problem arises if you go over the data limit set for you. If this happens, your mobile company will most likely add on an extra charge to your bill. This amount will be significantly higher than if you simply upgraded your plan. This convinces people that they need to upgrade their plan, when they really might not need to. With a little bit of adjusting and keeping track of how much data you have used, you should have no problem staying under your limit.

For some people, this just doesn’t work. No matter how hard they try, they always seem to go over their limit each month. Or maybe you have kids who cannot be bothered to keep track of their data plan each month. Whatever the reason, you are tired of going over your limit, but your monthly budget can’t afford to upgrade your data plan. This is where a capped contract comes in. With a capped contract, once you hit your data limit, your data plan will shut off. You will no longer be able to access the internet until your next billing period. Capped contracts are great for people who don’t trust themselves to manage their data plans, or for teaching kids about responsibility. Your kids will be much more likely to check their remaining data usage if they know the internet will shut off once it’s gone.

Not every mobile carrier offers capped contracts, so you will need to speak to yours and see what they have available. It is a little bit of a bold move, cutting off your data usage once you run out, but it could end up saving you a lot of money. You just need to run the numbers and see if a capped contract is right for you.