Hoy, a cell phone in Spain is a must. Landlines get very expensive, very quickly. The following information is compiled based on past experiences with different providers and the most recent pricing we´ve heard of. The information on this page is not biased towards any particular company. We just want to help you out.
The three current cell phone providers in Spain are Orange, Movistar, and Vodafone. Movistar is a subsidiary of Telefonica, the largest and oldest phone carrier and once monopoly of Spain. Vodafone and Orange have been in the market for several years now and their plans are similar.
There are two types of phone service contracts for sale in Spain, tarjeta (prepaid) and contrato (contract). Only Spanish citizens and permanent residents can purchase a cell phone wtih contrato – plan on a tarjeta.
Cell phones with tarjeta are prepaid and you recargar (recharge) the amount of saldo (credit) at any of your carriers stores around town and many convenience stores and supermarkets such as OpenCor, Más and Día, and Corte Inglés.
You should expect to spend 8-10 cents per text and 16-25 cents per call. For data/web, rates vary but work with many tarjeta models.
Questions to ask:
What is your lowest rate plan? What ofertas do you have currently?
How much must I recarga each month to maintain my rates?
Will this phone work internationally? Will I need a different SIM card?
What are the rates outside of Spain? Are there roaming fees for having your phone on?
Also ask about data plans, warranties, insurance, etc. if you´re interested.

Check out each provider's website for more information on rates and cell phones:
Vodafone
Movistar
Orange
All three have various pricing plans depending on what time of day you talk the most. All three also offer cheaper rates to specific phone numbers (which are from the same company as your service) you choose as the numbers you will call the most often. There are also some 'hidden' charges that you should know about such as IVA, the standard European tax, a connection fee for calls, monthly minimums (usually 10 euro).
