Prepaid phones are slowly creeping into the mainstream.  I say this only half-joking.  For many–those who were either ahead of the curve or slightly behind it–prepaid cell phones have been a mainstay and they have consistently saved money over 2-year contract wireless plans.  

For many people, on the other hand, prepaid had a lot of negative connotations.  These same people, when they get their monthly cell phone bill for their iPhone or Blackberry, may be dreaming of the day when they no longer have to pay over $100 just for the luxury of mobile telecommunication.  They may be looking at the Tracfone user who pay $20 a month and feeling a little bit jealous, even though their phone is trendy and a status symbol.

The truth is that now people are accepting pay as you go plans as viable options.  Wireless companies like Virgin Mobile and Boost Mobile are aware of this trend and as such are releasing new and nicer phones into the marketplace for their more discerning cell phone users.  The aim is to encourage people who want a high performing phone, but also want competitive pricing.  We all know that more plans and more options equals better prices, even in a somewhat insular market where 4 companies (the big four) pretty much run the show.

Upstart companies like Boost and Virgin and even Tracfone are horning in on the business of these bigger more traditional wireless providers and will probably gain more subscribers in 2009, especially as the prepaid phone market will probably grow at least 13% this year.