Prepaid cell phones are still a fraction of the overall wireless market, and they will be for a while, but many people are noticing a shift in attitude toward the alternative cell phone options that are out there. They are, in fact, becoming less “alternative” and more mainstream as people realize that there is nothing wrong with prepaid phones and, of course, that they can help save them money.
A New York Times article about prepaid phones reflects these sentiments. This kind of phone plan is becoming more and more acceptable to more people, which is a great thing because it literally opens up new markets, or at least opens up people’s eyes to these existing markets. But my point is that the consumer will have many more attractive options as competition becomes greater between all the existing plans, which is always a good thing.
Large wireless carriers are still sort of on the fence about prepaid plans. They would much prefer to sign up people with good credit to a contract that will last several years, which makes sense to wireless providers because they spend around $400 in advertising per new subscription. This model will be changing drastically in the next year or so. Pay as you go users have no contract, so will be more likely to jump ship and find a new competitive cellular phone plan.
Many people save with prepaid, but it is only a good option for some people. Many peoples phone habits are not amenable to pay as you go phone plans. Those who are “heavy” cell phone users would not find much savings in a plan from companies like Tracfone or Cricket because these phones are more closely aimed at those who talk more sparingly. Also, network strength and geography can be an issue. However, if you do use your phone often, you may want to look at the Boost Mobile Unlimited plan, which gives you unlimited data, text, and phone usage for a flat $50 fee.
The best thing about the new focus on prepaid is that people now have more choice. The issue is education and consumer knowledge. When you have more of both of these, you have more power to make a more informed decision, and of course, to save money, which is no small feat these days.
Read my review of Tracfone, one of the premiere pay as you go providers.
Find the best deals on Straight Talk phones and plans at Wal-Mart.com
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