Prepaid Wireless: Finding The Best Bargain

A Great Alternative To Expensive Contract Plans Amid Economic Meltdown

(CNET)  This story was written by CNET's Marguerite Reardon

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After the economic meltdown over this past year, many Americans are looking for ways to cut back their monthly expenses. And prepaid wireless plans offer a great alternative to expensive contract plans.

Traditional prepaid services or pay as you go services allow people to buy their own phone at full retail price and then put a certain amount of money in an account that is deducted based on usage. Some plans offer buckets of minutes for a set price, and some allow people to just put however much money they want in their prepaid phone accounts. These plans allow people to know exactly how much they are spending each month, and if they run out of minutes or money in their accounts, they simply add more online, over the phone or at a retail location.

These plans differ from post-paid plans, which offer buckets of minutes for a set price, and then bill customers at the end of each month, sometimes resulting in surprisingly high phone bills or excess charges for services that were never used.

Prepaid services have long been popular in Europe and other parts of the world, but in the U.S. these services have traditionally served only niche markets. But now prepaid is gaining steam in the U.S. And consumers of all stripes looking for good deals with no service contracts are considering canceling their post-paid services and going to prepaid.

Ideal candidates for prepaid services include people who use their phones rarely to call friends or family when they are out and about or who only own a cell phone because they think they may need it for an emergency. My 66-year-old, retired father falls into this category. Teen-agers are also prime candidates for prepaid services, especially for plans specific to text messaging, such as Virgin Mobile's Texter's Delight or T-Mobile's Sidekick plan. These plans offer loads of free texting and cheap per minute voice charges.

And now a new category of prepaid services has emerged that will likely appeal to traditional post-paid customers, who talk, text, and access the Mobile Web a fair amount each month. Several carriers including Virgin Mobile, Boost Mobile, MetroPCS, and Leap Wireless's Cricket offer low-cost unlimited plans that include voice calling, messaging, and unlimited Web surfing. And the beauty of these all-you-can-eat plans is that customers aren't required to agree to a pesky one-year or two-year contract and risk paying expensive early termination fees.

While there are many benefits to prepaid, there are also some downsides. Typically, these services don't offer the coolest, cutting edge phones. In fact, MetroPCS is the only prepaid operator offering a plan for a smartphone, the BlackBerry Curve. And the fine print in these deals can make picking the right plan with the best value difficult.

There are some very good Web sites out there that can help consumers pick the best plan for them. The most comprehensive one I have found is called Prepaid Reviews, which rates prepaid options from 24 carriers. Consumers can view the pros and cons of each operator, track which phones are offered, write reviews, and read evaluations on several categories. Also, there's a tool that allows people to compare up to three carriers at once.

But for those looking for a quick look at what's available, I've selected some of the most popular plans from smaller providers to big carriers, such as AT&T, Verizon Wireless, and T-Mobile, to help readers begin to find the plans that best match their needs.

Click here to read the complete comparison breakdowns.

[PrepaidWirelessGuy]

I believe prepaid is the future, and given its penetration in Europe, it's not a far stretch. I wrote a short article about postpaid demise if you're interested (http://www.prepaid-wireless-guide.com/postpaid-wireless-demise.html).

Also, for those interested in comparing the various plans to narrow down how to get the best value for your needs, you can feel free to check out this free resource: http://www.prepaid-wireless-guide.com/compare-prepaid-plans.html

[PrepaidWirelessGuy]

For a complete comparison of PAYG, daily, monthly hybrid, and monthly unlimited plans, visit here: http://www.prepaid-wireless-guide.com/compare-prepaid-plans.html

[debinok1]

I have had a GO Phone for about 2 years. I put $100 a year on it and it lasts a year. I use it for emergencies only, if I break down, or if my sons school needs to reach me. For a little over $8 a month I have cell phone service. I also have a home phone that friends and family can call, if I am not home, leave a message. Both phones and my internet service cost me about $50 a month combined. I just could not bring myself to pay what the other companies with their contracts wanted to charge, it just didn't make good financial sense.

[jacktery]

I have virgin mobile pay as you go for last five years. It costs me $20.00 every 90 days.
Since, i have an old car, and drive mostly on major highway. it's very helpful, when car breaks down.

[Dgunner]

I know this to be fact. If you have a police scanner ? You can program in the frequency of the provider aand listen to conversations open in the air. The local authorities here in my city tracked and arrested forty five pharmacutical drug dealers just by monitoring thier cell phones. Since prepaid phones are untraceable, the authrities just monitor the waves until the users say something to ta them to a location or name. BE CAREFUL WHAT YOU SAY BIG BROTHER IS EVRYWHERE IN SOME FORM OR ANOTHER.

[itgranny]

and when you consider taking the phone away, you're on a 2 year commitment that still needs to be paid whether the phone is getting used or not. for me this makes more sense.

[itgranny]

My work pays for my phone so i don't have a "family plan" phone. $1 a day, $30 a month isn't bad for unlimited texts, unlimited mobile to mobile and unlimited night and weekends. the 2 phone family plan by the same carrier is $84.

[whitemale08]

I remember living in Latin America and see all of the poor people line up for 'pre-pago' services.

This is just another example of the United States merging their economies with Latin America as a result of being suckers to British 'free trade' and 'globalization'.

[fedup12]

Posted by itgranny at 6:01 AM : May 16, 2009

our son is on our plan. If he doesnt perform well at school we just take his phone away.

Prepaid plans and texting= freaking expensive!

[itgranny]

I got a prepaid for my teen son. It lets me cut him off if he doesn't stay in line. Just before recharging, i take a look at his grades and if they arent' up to par, it doesn't get renewed. One month without texting is a nice, consequence for him to learn he shouldn't get getting 0's in algebra. $1 a day after buying the phone. Unlimited text, unlimited calls when calling another customer from the same co. It makes much more sense to be to go day by day.

[darth_dionysus]

I have a Packet8 VOIP (Voice Over Internet Protocol) service at home, so I have unlimited long distance for about $25 a month. So the cell is only for when I absolutely need it. I use Net10, which is owned by TracFone. I've had it for a few years and it suits all the cell needs I have. I pay about $30 every two months. There is no way I would pay $50 or whatever a month just to use a cell phone.

[anchoragemichael]

I have used a TracFone for a little over a year and am very happy. I paid $10 for the phone and I pay about $40 every six weeks or so for airtime. (Thats after a one time fee for "doubling my minutes for life") I'm just not chatty on the phone. I would rather have long chats with my friends irl. My cell is so work can reach me, so friends can confirm plans and for emergencies. When at home, my land line is much cheaper if I am feeling chatty that day!

[jetranger7]

Well 3 Years ago, I got myself a GO Phone, prepaid cell phone, and I like it, I rarely use it, except in Emergencies, but the reason I got it was - I was tired of being ripped off by the Cell phone companies and their Fraudulent billing practices every month and their Phony , fraudulent deceptive Contracts they make you sign,, from now on - I outright Refuse to Sign Contracts for anything, those companies who want to engage in that phony practice will NOT get my business Ever !!!!!! Most of those Contracts are a Fraud and are Deceptive to the purchaser / consumer ! Try getting the very people who want you to sign their contract,,, try getting them to Sign YOUR Contract that you make up, watch what happens !

[determinedone]

Call me

paranoid, but I sometimes feel like someone could 'interfere' with my cell phone connection.

Didn't that happen to Rush?

Could someone intervene on your call and make you and your party think things that weren't being said were being said?

Anyone here have any tech knowledge?

I know it's possible to splice a land-line pretty easy for an 'expert'.

What about regular cordless phones?

Also, I've heard that people with the right 'connections' can access your line from the phone co.

Hope I was entertaining!

[kenhamlett]

For those of us who do not need to use the wireless services often, prepaid can be a great bargain. Remember to search for special bonuses when adding time and it can become dirt cheap. I still find long term contract services absurd when compared to many prepaid plans. Thanks for pointing out this alternative.

[sjc_1]

I pay $5 per month for a cell phone that I rarely use which cost me $10. It works fine and when I need one, I have one. I do not want the $100 per month plan. I do not need it and would never agree to it.