On sprint; What does it mean when you buy a phone and sign a year contract on it.?

Question

I'm finally on my own now and my parents never let me sign a contract when i bought a phone. I know it makes the phone cheaper but i'm sure there is a catch to it.

So, lets say that i bought a phone and i signed a year contract with it. What does that mean?

Do i have to stay with that phone for a year? But how about if it doesnt work? Do i have to pay for a new phone or do i get a free one?

Answer 1

You have to sign a contract when you are sold a phone at a discounted price because it helps the carrier recover the difference in price for the phone. They give you a phone for cheap, and in exchange, you give them a year (or more likely, two years) of your life. This means that you can switch your phone out as much as you want, but your contract with the company is for 1-2 years from the date you purchased the phone. If you end service with the company before the contract is over, you could be assessed early termination fees, which range from 150.00 - 200.00, but I think Sprint's ETFs are definitely 200.00...