When I tell people that I write about prepaid phones, I generally get a sort of half-hearted smile and a polite nod. Prepaid phones are, unfortunately, not mainstream and summon to mind old-fashioned flip phones with a tracfone logo emblazoned on the top that ensures you’re going to get sub-par service. But that was back when cell phones were still relatively new, and the market has changed since then. What hasn’t changed much is public opinion.
Even with prepaid gaining quite a bit of traction in the last couple of years, it is still considered by most people to be an inferior way to gain mobile service, despite the obvious savings. And why is that? Well, it’s actually pretty simple. Prepaid has a certain reputation, and it tends to push people away.
We will break it down into three parts: social status, network and phone availability.
Phones and Social Status
With the proliferation of cell phones in this day and age, no one can deny that your smartphone has become something of a status symbol. Why else would people stand in line for hours when a new iPhone is released? In the United States, at least, there is this social norm where your phone and the service you get on it is one of the things that defines you.
While an expensive subsidy-backed phone on a contract plan (which costs way more than it should) will suggest to others that you’re well-off, a cheaper phone on a prepaid plan tends to suggest that you’re of a lower social class or that you aren’t as well off and cannot afford to have a contract phone. Of course, most of the time that is far from truth, but unfortunately public opinion is not easily changed. This first barrier isn’t the biggest one by any means, but it is most certainly a factor for some people.
Prepaid Networks
Many people who have never used a prepaid phone are of the belief that prepaid phone networks are completely inferior to contract plans. While there is some truth to it in that the two networks are not exactly the same, most people wouldn’t even notice the difference if they switched to a prepaid network. The base network is exactly the same–the only thing you lose is roaming on other networks. Depending on the service where you live, you probably don’t even need that roaming. And if you do, there are a few prepaid companies that do support roaming, so you can still come out on top without breaking the bank and signing your life away.
Phone Availability
The third barrier to the wide acceptance of prepaid networks is the misconception that you can only have cheap phones on a prepaid plan. Of course, we know that most carriers don’t really care what phone you activate on their plans, but that image of a cheap flip phone TracFone is unfortunately the first thing that will come to mind for most people when you say “prepaid phone.”
Of course, the huge cost of a nice phone on a prepaid plan is likely a barrier as well–I can get a Moto X on AT&T with a contract/payment plan for $100 or on Cricket for $600. While the cost of a subsidy or a payment plan is going to be far more than the upfront cost, it’s hard to swallow that huge number at first.
Prepaid On The Rise
So, while prepaid use is definitely on the rise, spurred by the sub-par economy in recent years and the outrageousness of the carrier prices, it is still far from popular. So what can be done? Education. The only hope that prepaid has is to banish those rumors about poor networks, cheap phones and bad service.
After all, the freedom that comes from not having to stick with a company that gets poor reception or has terrible customer service and high prices is pretty nice. And that’s not even getting into the savings per month or year in switching.
Still on the fence, or need help figuring out which type of phone is the best to take?
Check out this article that outlines the different types of phone plans with pros and cons. Then let us know what you think in the comments! Why do you use a prepaid plan?]]>
