Picking a phone: buying on a Nexus 5 on a plan isn't necessarily cheaper

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Picking a phone: buying on a Nexus 5 on a plan isn't necessarily cheaper

You might end up paying more in the long run if you get the highly regarded Nexus 5 phone on a Telstra plan, instead of buying it outright.

Given that it's quite a bit cheaper than the cheapest iPhone, the highly regarded Google Nexus 5 is generating quite a bit of buzz.
That said, it's a phone that up till now you've had to buy outright (not on a plan).
So it's interesting to note that you can now buy the 16GB model on a 24 month plan from Telstra, but it will cost you more in the long run.
According to Telstra’s pre-order page plans start from $69 per month for $600 worth of calls, unlimited text and 1GB of data and go all the way up to $130 per month for unlimited talk/text and 3GB of data. 
If you bought the Nexus 5 for $399 outright and went on the $40 pre-paid encore with Telstra, which included $510 worth of calls and texts in addition to 1.6GB of data (provided you use the $40 bonus credit to purchase an additional 1GB of data as a plus pack), you will save $312 over the course of 24 months.
Remember, you might be able to get even cheaper again if you buy a phone outright and go with one of the other low-cost pre-paid providers, though there are limitations. And keep in mind this person's bad experience with pre-paid phone calls.
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