The Continued Utility of Prepaid Phones

| June 5, 2013 | 0 Comments

In an era dominated by private telephone contracts, who would want to use prepaid phones? As it turns out, there are many existing reasons that allow some consumers to continue choosing prepaid contracts over private contracts. Read on to find out why people continue using prepaid phones.

Prepaid Phone

The Price

In today’s smartphone dominated world, it is hard to distinguish what payments are made for what. The phone bills do not list who specifically was called or for how long, which text messages were sent off with how many characters, and whether games and other accessories were accessed. The consumers are simply billed one flat fee without knowing how exactly the fee is broken down. With a prepaid phone plan, there are fewer chances of surprise fees and high monthly costs, according to Amanda Sneed from Quality Logo Products. Sneed states that she enjoys the reliability and the consistency that her prepaid service comes with, not to mention the affordability of it.

The Time Commitment

Many private contracts require a minimum time commitment — usually around two years — but instead subsidize the cost of the phone itself. However, initial costs do add up, in addition to standard monthly bills. Some contract commitments are too long for the consumer, and therefore they end up breaking the contract and simultaneously paying large fees. With a prepaid plan, there are no time commitments and service can start as fast as it ended, whenever one wants. If one is dissatisfied with the service, then switching is no problem at all, and at most times their phone number can be retained for future services.

The Limited Options

For those using private contracts, they have a choice of approximately four or five carriers. But what if none of those carriers fit with your personal mantra? What if all of those carriers do not satisfy your idea of how cellphones should work? Well, prepaid phones have a solution for you. Instead of being bogged down by a few major contracts, the prepaid market offers several that each have their own benefit.

Another limiting factor is the zone of coverage. With prepaid phones, a large coverage area is usually provided for phone users (such as a whole country or even continent). But with contract users, roaming costs kick in and the consumer becomes limited by where he or she can use their phone. The limited geographical options also lead to prepaid cellphones being a great option.

The reasons mentioned above, in conjunction with the tough economic times as according to CNN, have led the prepaid wireless market to take off and even spur a price war with the private contract companies. Many people have switched from post-paid plans to prepaid plans in order to save money and have the flexibility and control for which prepaid plans are known. The top companies continue to contend over who will dominate the cellular market, but it may be that the prepaid companies are the ones with the most subscribers. Can you hear me now?


Thomas Finch is a freelance writer based in San Diego, California who enjoys writing about personal finance, technology, gadgets, cell phones, cell phone insurance, savings, debt management and other neat subjects. Those contemplating cell phone insurance should be sure to contact a reputable smartphone insurance provider.


Category: Press

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