Offering free cell phones has always been a marketing tool of every single one of Canada's carriers [Bell Mobility, Fido, Rogers Wireless, Telus Mobility]. In this article, we'd like to touch on the upsides, the downsides and the plain obvious. This information also relates to the oh-so-good deals (like $24.99 for a phone that is supposed to sell for $500).

Why would they give me a free cell phone?

Mobile providers believe that if they can get you into their service, you'll stay forever. This theory has been proven correct time and again through client-bases in all of the major providers. You usually only get the free price if you sign a contract for 2 or 3 years, sometimes more. If you want out of this plan, you're stuck paying for a cancellation fee which can usually go around $200 or more, depending on the time left in your contract. Once you're in for the contract, they've basically made a profit from giving you a free cell phone.

Quality of Freebies.

This is the thing which gets so many consumers where they don't expect it. In my experience, the free cell phones I've received have proven to be bottom of the line in whatever they're marketed for. Today, the colour phones offered for free look kind of cool, sound kind of cool but can usually be very cheap. Made in China comes to mind! No offense to China, but I want a durable and long-lasting phone. Not something that gives me 1 hour of talk time before it dies and will shatter if I drop it.

Free Cell versus Full Price.

It really depends on what you want your cell phone for, who's paying for it and if the free one is really worth it. It all has to do with numbers, and sometimes going with a contract just makes more sense if it's what you need. It's a gamble, but before you sign a contract, be sure to check our User Forums and Provider Reviews.

Getting around the contract.

If you're on Telus or Bell, no. But if you're interested in Microcell Fido or Rogers Wirless, absolutely! GSM providers often 'lock' the phones you buy from them to work only with their respective network. There are, however, alternatives to purchasing directly from you provider and buy from shops specializing in GSM mobiles. Ebay is also another suggestion.

If you buy a phone not directly from the provider, please be sure you understand the conditions before you buy the product! Make sure the phone you're buying is guaranteed to be unlocked or better yet, test your SIM card in the phone you want to buy.

Service Agreements versus Contracts.

If you've come across a free cell phone which is not on a contract, you're probably wondering if there's a catch. The answer is short and simple, most likely yes. Always read the fine print, you might find the word "service agreement" somewhere in there. There's a difference between service agreement and contract, but they are essentially the same thing to a consumer.

A service agreement basically states that if you cancel your mobile service within a certain amount of time, you will be required to pay for the full retail amount of the cellular at the time of purchase. The period can range from 1 to 2 years. Know what you're getting into before you go ahead and purchase!

Bell Mobility Solo:

http://www.solomobile.ca/

Fido Prepaid Service:

http://www.fido.ca/

Rogers Pay-as-you-go:

http://www.shoprogers.com/

Telus Mobility Pay & Talk:

http://www.telusmobility.com/