Best SIM Card, Mobile Network & Cheap Operators Germany 2024

6. Types of Phone Contracts in Germany Compared

Pay-as-you-go vs. Subscription

Pay-as-you-go

With pay-as-you-go, you only pay for what you consume. You are charged for every minute you use your phone or megabyte of data you consume. This type of plan is mostly attractive if you have very low usage—e.g., you use your phone mainly “to be reached” or perform occasional short calls.

Subscription

With a subscription, you usually pay a monthly fee for a package with a specific bundle of services; these may, for instance, include:

• Unlimited or a certain number of included minutes for national calls to landlines and other mobile networks
• Options to perform a certain amount of calls to selected countries abroad for free or a limited fee
• Unlimited or a certain number of texts
• Included data—usually unlimited: There is a certain amount of megabits included for high-speed data use for surfing or social media. After consumption, the speed is reduced so that at least messaging is still possible.

Prepaid Plans vs. Postpaid Plans

Prepaid Plans

Before using a prepaid SIM, you charge your card in advance. You may choose a pay-as-you-go option or a monthly subscription. The latter is usually renewed monthly if you do not cancel or run out of sufficient balance. Prepaid plans are the most flexible option, as you can cancel or change the package anytime. They are especially great if you have just arrived in Germany or only plan to stay for a limited time. You usually do not need to provide a local address.

Postpaid Plans

With postpaid options, you close a contract with a provider, and charges are deducted from your bank account at the end of the month. Different plans are available with a minimum notice period between 1 and 24 months. With a notice period of 1 month, you are very flexible and can always terminate your contract. However, even with a 24-month agreement, there are exceptions to terminate the contract: If you move abroad, special rights to cancel or pause the contract may be available. Some services are only provided as a part of postpaid plans (e.g., eSIM, multiSIM, high-speed / high-volume data). Also, providers offer attractive bundles to get a new phone and pay in installments. Hence, this is an excellent option if you want to stay permanently or forever.