I'm thinking of finally getting a smartphone, and after looking at all the options, I'm considering just outright buying the Galaxy Nexus so I don't have to have a contract. What's the deal with this? How do you get service with an unlocked phone? Do you just take it to your provider and get a plan with no contract? Do you buy minutes or data? Do you save money in the long run? I'm sick of being stuck in these contracts (even though it sucks paying the $349 up front). If anyone has done this and has some advice or info, I'd appreciate.
No-contract is very common here in NZ. I am still using a very old (not-smart) phone, so I can't comment directly, but I have lots of friends with unlocked Android phones. I'm not on any subscription plan, though - I use pre-pay. Can't comment about US plans, except to say that you guys are getting screwed over - as far as I know, the USA is the only place in the world where you are charged to receive a call or a text. Those are free for everyone else. Just FYI.
What? Americans pay for receiving calls? Just to get one thing clear. Is it only when roaming, so if you receive a call out of state, or always? Paying when you receive a call when you are roaming is pretty normal (at least in the Netherlands). As for the question, I am in pretty much the same boat as brian. Pre-paid with a not-so-smart phone.
On a mobile, everything costs - sending/receiving a call or text, all the time (as I understand it). Sometimes you don't really care, e.g. if your on a plan, and you have X number of 'free' minutes or texts. Here in NZ we pay to receive when roaming too - roaming means "anytime overseas", for us.
I would always recommend buying an unlocked phone because then the phone operator cannot put it's Junk on it. It works out the same or less money in the long run and you own it.
Id also suggest putting aside the same amount as you would spend on insurance per month or the phone say $10 per month and within 2 or 3 years you will have enough for a new one and not have wasted money on insurance that would probably only try and find a way to not pay you. I have a tariff in the UK from a company called GiffGaff owned by O2 its £10 per month 250 minutes unlimited txt's and unlimited internet all my friends pay £36 per month for similar tariffs with phones.
I bought an HTC Inspire (aka HTC Desire HD) last year used from my ex's store (http://us.webuy.com/). It was already and AT&T phone, and I had a plan, I just had to go and get a regular sized sim card from them. When I got to Australia I paid 40 bucks to have it unlocked to work on the Aussie networks and then went to Telstra and got a prepaid card and popped it in and it worked. I think as long as it has a sim card they should work. It gets more complicated with verizon phones I think because they don't use sim cards.
Here in Canada you can just go to any provider and get a plan with no contract (provided your phone runs on their network). It's similar to what happens after your 2-3 year contract runs out; you keep the same plan and can bail out at any time. The fun thing (for me) is looking at all the ways you can combine different parts of plans that you couldn't before (I was a customer service rep for Bell for a while). For smart phones in BC most every 3-year contract you need a $50/month minimum plan, but you can do it for less if you're not on contract.
I recently tried to bail halfway through a 3 year contract in BC as I am going traveling for a while. They let me pair my contract down to $25 a month and unlocked my phone for $50 so that I can use it anywhere. Wasn't too bad, either way I am getting hit for having a 3 year contract, this way I pay monthly instead of all at once.