The Advantages of Prepaid Cell Phones

The Advantages of Prepaid Cell Phones

The Advantages of Prepaid Cell Phones

As the service provider competition for cell phone subscribers' increases, one way for consumers to save some money, though not necessarily the best way, is to switch to a prepaid service. These prepaid cell phone plans, which allow the consumer to pay for service as required without a contract, are very attractive because they are so inexpensive and allow the consumer to find better deals. They are very appealing in this slow economy.

Nobody wants to be under contract to have to pay large phone bills. New prepaid subscribers have consistently outnumbered those who sign contracts. However, most carriers continue to make changes to their resellers and prepaid companies to drive growth, however, their focus remains on contract accounts. While many of the major service providers have an option for a prepaid service, a lot of their new business actually comes from the reselling of prepaid services to smaller carriers who don't use their own networks.

In addition, users who want a prepaid service have numerous other carrier options such as Cricket, leap Wireless, and Metro PCS. Choosing a plan can be even more difficult. Consumers nay have to choose between pay by the day with a per minute plus an additional daily charge for the days they use the phone and pre purchased minutes (pay as you go) that expire after a certain amount of time, depending on the carrier. In addition, there are some carriers that offer a flat rate monthly plan for a certain number of minutes that doesn't have the commitment of a service provider contact. However, because there is so much competition, the savings the consumer see from the switch to a prepaid plan frequently aren't as immediate or as much as most users were hoping for. Prior to switching to pre paid cell phone plan, here are some factors to consider:

Those people who talk for one hundred minutes or less in a month will nearly always save money with a prepaid cell phone. The savings will depend on how frequently you talk on the cell phone for everybody else. The prepaid cell phone plan begins to become less attractive the more you use your cell phone. Usually, the rate per minute on a prepaid plan is higher than with a contract plan. The daily usage fee of some prepaid plans will also eat into your savings.

However, there are prepaid plans that will save the user money regardless how many minutes are used. Cricket, Metro PCS, and Boost Mobile all offer an unlimited text and talk plan. That's less expensive than service provider's comparable unlimited contract plans.

The prepaid plans are really more attractive if the consumer doesn't use many applications. Some service providers will frequently require data plans on smart phones which will add a considerable expense to the monthly bill regardless if the consumer uses these capabilities or not.

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