6 reasons why now is the time to go prepaid

pay as you go cell phone providers. We’ve even set up a way for consumers to compare prepaid plans. And then there’s this whole blog, which covers all we can find about the prepaid wireless industry. So it comes with great pleasure today to bring you our reasons why now is the time to go prepaid. We tout our top reasons to choose prepaid, but that’s more of a general statement. Today we discuss why now is a better time than ever.

1. Choices abound

Just look at all those providers we have listed in the right sidebar. That’s just, as they say, the tip of the iceberg. There are many more prepaid wireless carriers, and we’re working on getting more of them featured on Prepaid Reviews. More choices means a few things. In theory, it means better pricing through competition. An ideal of this country is free and open markets, whereby companies have to compete to get your business. It seems the median price for a prepaid minute is 10 cents. With more competitors in the field, you’re more likely to see one company drop that rate to, say, 8 cents. The others, in theory, will follow suit, because they don’t want to lose customers. This is, of course, in theory, and we haven’t seen a whole ton in the way of pricing wars. Things could change, though. We’re seeing people talk about MVNO 2.0, and that could bring some fresh competition to the market. Companies like Spectrum Bridge can help, too. More choices also means that it’s more likely you’ll find a carrier and plan that fits your personal calling needs. For an example of this, you can look right at Virgin Mobile USA. They alone have three different tiers of calling options — monthly rate plans, monthly roll-over minute plans, and straight pay as you go. Tracfone has all sorts of cards that allow you to customize your prepaid experience.

2. Forget the commitment

This applies universally, but especially nowadays. Why would you want to commit to cellular service? We know that customer service is poor all around the industry. Signing a contract gives a company even less incentive to take care of you. You’re theirs for two years, whether they provide good service or not. We’re in an election season, so we’re hearing the candidates talk about how they’re going to improve the economy. This brings to light a truth: the economy isn’t at its best right now. It’s not terrible, but it’s certainly not what it once was. Clearly, the bottom portion of the income scale is feeling this the hardest. So why on earth would a family in such a position want to sign a two-year contract? In uncertain times, it’s best to stick with something you’re not obligated to pay for every month. An unpaid cell phone bill can ruin your credit. This does not happen with a prepaid cell phone. You pay for the minutes first, and if you go over, you don’t have service. Really, it’s a great budgetary tool.

3. Bide your time

There are so many cool phones hitting the market these days. No doubt even cooler ones will hit tomorrow. And the next day, month, year. Choosing the right one isn’t easy. There are plenty of options to weigh, and even after a whole process of deciding, you still might not get what you pay for. Instead of signing a new contract, why not go on prepaid for a while? That way, you can bide your time, waiting for your perfect smartphone to hit the market. For instance, take the iPhone. Even with the iPhone 3G, you know Apple has more up their sleeve. They might not be putting out another model next July, but something else will drop soon enough. Why not wait for that model, which will feature improvements over the last? Yes, I know you can just go month to month with your carrier once your contract runs out. But we’re talking prepaid here. It works well enough.

4. Great international rates

Calling overseas is never cheap. Even as prices fall, it’s still a financial burden. Thankfully, there are a few options in the prepaid wireless space that provide decent rates to foreign countries. Total Call International centers their business around overseas calls. They’ve got some of the lowest rates around there. Plus, they have calling available to almost any country you can think of. Net 10 has similar rates, but only to a select number of countries. Still, both of these provides give you a chance to catch up with friends and family abroad, without completely breaking the bank.

5. Going unlimited

This year, the major carriers each unveiled an unlimited calling plan. They do a lot of research before introducing new plans like this, so it sounds like there’s some demand for unlimited calling services. Thing is, you’re better off doing this with prepaid than postpaid. In the past year, a number of prepaid companies announced unlimited calling plans. Boost Unlimited expanded from its test market to a number of nationwide markets, including a big chunk in Florida. Virgin Mobile priced theirs at $79.99, with unlimited text messaging just $10 extra. Perhaps the most under the radar prepaid announcement this year was Net10’s unlimited plan. It too costs $79.99 per month, but includes text messaging. Previously, two prepaid carriers ruled the unlimited world. You know who they are: Metro PCS and Cricket prepaid. Their prices destroy those of the major carriers. For $45 per month, or half of what the major carriers are charging, you can get unlimited calling, texting, mobile Web, and more. The disadvantage, of course, is that they don’t offer nationwide coverage. You can upgrade, though, to get a bucket of roaming minutes, and it will still cost less than the major players. If you’re going unlimited, prepaid is the way to go.

6. Decent handsets for decent prices

Back in the day, if you went prepaid you’d be stuck with a rather crappy phone. While that’s still true to some extent today, we’ve seen a number of carriers release better handsets at reasonable prices. AT&T recently announce the Samsung A137, a $40 prepaid phone that comes with an MP3 player, Bluetooth, aGPS, and a WAP browser. They’ve also got the Sony Ericsson Z750, which adds a camera and better media player. It’s priced at $40, but with the $25 free airtime promotion they’re running, it comes out even cheaper. Then you have Verizon, which normally has a skimpy and sometimes expensive prepaid line. Even they’re catching up, as the Verizon Blitz, or the UTStarcom TXT8010, is set to hit their INpulse prepaid service. Heck, even Tracfone and Net10 are adding newer handsets to their lineups — ones that even include Bluetooth. Nice to see them catching up. As prepaid handsets get better in quality, more people will be attracted to it. ]]>