Under 12 Months Free Line Rental plan, the user signs a contract with the mobile network service period for a fixed period of 12 months. He has to deposit a fixed amount of money as rental and security deposit to the network service provider. In return, the network service provide gives the user a lot of benefits like subsidised call rates, free text messages, free talktime and other gifts. The user's dream handset is also offered free of cost as part of the plan.

Since the user need not deposit the entire amount of the handset, this plan makes it possible for users to own a high-end mobile phone at very low cost. The user only has to deposit a part of the handset's cost to the network service provider. Moreover, the user can always replace his existing handset with the newest model under the plan. For this, he has to deposit a nominal amount of money with the network service provider. The 12 Months Free Line Rental plan is particularly useful to those who want to own a high-end mobile phone but cannot afford to buy it. The plan often offers free weekends and night time calls to the users. The service providers may also provide the users free calling facility to any other users who also use their service.

The Pay As You Go Phones plan works quite differently. The user has to buy a 'Phone Card' from the market to get this plan. The plan requires the user to buy his own handset. One can also buy a Pay As You Go phone or a "Payg Phone" from the online stores like Target and Amazon. The user has to sign up with the service provider once he gets his handset. For this, he has to call the network service provider at a number given in the Payg phone manual.

The service provider's representative will ask for the serial number of the Payg phone. He will then assign a cell number to that serial number. The user has to add some credit to his account every 90 days to keep his phone account active. Talktime is deducted from the user's available balance. If the balance reaches zero before the expiry of 90 days, the user will have to buy another phone card to keep his phone account active. That is why this plan is called "Pay-As-You-Go-Phones" plan.

The Pay As You Go Phones plans generally tend to be very straightforward. Their call charges are comparatively high. Moreover, the user has to buy his own handset under these plans. Free weekends and night time calls may be offered at times. Such offers are generally made for short durations and for promotional purposes only.

The advantages of Pay As You Go Plans are many. The user need not enter into any agreement with the network service provider. Moreover, the user is not required to pay any fixed monthly rental to the network service provider under the plan. This plan is particularly popular among teenagers as they normally do not have a credit card. The plan is also useful for those adults who use their cell phones minimally and cannot justify the high cost of a standard cell phone plan.

Both the "Pay As You Go Phones" and the "12 Months Free Line Rental" cell phone plans have their own pros and cons. It finally depends upon the user which plan best suits his needs. One should always compare different tariff plans and finally go for the one that best suits his or her requirements.