MetroPCS, not one to be left behind in the prepaid price wars, has released a $40 Unlimited prepaid plan meant to compete with similar offers from Boost Mobile and Tracfone.

Why Prepaid?

Prepaid service, in case you don’t know yet is considered to be a lower-end cellular service, but has grown immensely in the last 6 months to a year, as consumers are looking for ways to trim costs.

Using a prepaid phone is a good way to cut costs because they are very affordable–and as you will see in this article, they are becoming more and more affordable every day. Furthermore, users don’t have to sign a contract, undergo a credit check, or have any kind of commitment whatsoever with a prepaid wireless provider.

Origins of the Prepaid Price War

It started with Boost Mobile’s release of its Unlimited Monthly prepaid plan, which includes unlimited talk time, text messages, and data usage all for the price of $50. When this plan was released, many wireless industry insiders and writers suspected a price war would ensue. Well, this price war has occurred and it’s going on right now.

*Read more about Boost Mobile’s Unlimited Plan.

This summer, Tracfone stepped further into the fray with its Straight Talk unlimited plan which is even cheaper than the Boost plan, at $45, and runs on the Verizon network.

*Read about Tracfone Straight Talk.

MetroPCS’ Slashes Prices to Compete

MetroPCS now has lowered the price of its unlimited plan to $40. The plan includes unlimited voice, texting, and web access. For five bucks more ($45 total), your MetroPCS unlimited prepaid plan will include unlimited email, navigation, and social networking functionality.

If you are more Smartphone-inclined and want more out of your mobile device, MetroPCS also has a $50 plan that will work with this kind of phone.

The regional prepaid provider has basically just chopped $5 off each of its plans in order to be competitive. As a customer, that means you get more for your money. That’s always good news.  If you consider a plan with MetroPCS, you definitely want to look at the coverage map and make sure you have solid coverage in your area.  At the price of $40, MetroPCS has undercut Straight Talk from Tracfone by five bucks and Boost Mobile’s Monthly Unlimited plan by ten.

It’s clear that they mean business and are interested in gaining a stronger position in the prepaid market.

There are a few bad things that can come from this price war though. Each user will generate less revenue for the provider, which means that however popular these plan may be with consumer (cheaper=more popular), these plans may not be sustainable and may no last long.

I don’t really see this happening, though. What I do see happening, though, is a reliance on making money by selling “add-ons” with the phone service and a heavier push on selling products and services directly through the phone handset.  If you are the type of person who doesn’t fall into that kind of trap, then these plans might be good options for you.

In sum, if you’re looking for a cell phone, check out the unlimited plans from MetroPCS and Tracfone Straight Talk.

See plan details:

MetroPCS $40 Unlimited Local & Long Distance Calling Plan

MetroPCS $30 Unlimited Plan:

MetroPCS has also released a new and improved MetroPCS Unlimited Text Messaging plan for $30. Definitely have a look at this plan as it offers unlimited local calling, domestic long distance, unlimited local and international text, among other features. It’s a very affordable phone plan.