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It's simple. The wonderful thing about our economy is demand fosters innovation. This means that companies are constantly making improvements not only to their products and services, but also to their terms and restrictions in order to stay competitive in todays market. They should be allowed to offer long service contracts, and the market will judge the value of these contracts.

If cell phone companies offer ridiculous terms, or unreasonably long restrictive contracts, consumers will take their business elsewhere. It's the simplest application of the basic principles of our economy. As a customer, it is your responsibility to be aware of what you are signing. Understand that a reduced price may be available if a longer commitment is made. Find out what it takes to terminate a contract early. Is there a buyout amount or penalty for early termination? As a customer you are responsible for making an informed choice.

These long contract terms of one to two years allow the cell phone companies to offer promotional pricing, free or reduced price equipment, and better deals, knowing that in the long run they will make a profit. If you do not want to agree to these terms, there are many other plans and companies available to fit your needs.

Asking the government to outlaw long term contracts would not help you at all. In fact, with extreme regulation of these contracts, you, the consumer, would not have some of these special reduced price deals available and could end up paying more for the same service. By forcing larger companies into the pay as you go arena, it could force smaller companies out of business, resulting in less competition and less options for the consumer.

When it comes to our economy, increased governmental regulation is almost never the answer. Buyer beware; make informed choices and don't be a victim.

Learn more about this author, Patrick California.
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