Pay as You Go Cell Phones
Cell phones have become a way of life and for many people, and cell phones have replaced landlines as their main form of contact. Pay as you go phones (or prepaid cell phones) are gaining in popularity for several reasons.
This article discusses the advantages and disadvantages to the two types of cell phones and compares five of the most popular pay as you go plans (as of January 2010).
Advantages of a Pay as You Go Cell Phone
- Customers who are not happy with a cell phone service under a contract are penalized if they move their service to another provider. The contract termination fees can amount to $150 or more depending on the length of the contract and the time the consumer has been under it.
- Many people do not have spotless credit. Traditional wireless services may not offer service to customers with bad credit or require a sizeable deposit. Prepaid wireless plans do not require a credit check.
- Cell phone providers that demand a one or two year contract often require the customer to provide them with a credit card. Pay as you go cell phone providers do not demand this form of payment.
- Prepaid cell phones allow customers to fit the amount of usage into a monthly budget. Customers are keenly aware of the amount of usage minutes that are available and tailor the amount of phone time used around the budget.
- Pay as you go cell phones can be valuable learning tools especially for teenagers. Parents can provide cell phones to their teenaged children and avoid paying extra money if too many minutes are used. Teenagers learn that time spent talking or texting is indeed money.
- Consumer pays for only the amount of time the phone is actually used. Traditional wireless companies charge a fee even if the phone is used little if at all during a given month. A prepaid cell phone service allows customers to skip a month or two without fees or penalties. This can be especially helpful when times are economically tough.
Disadvantages of a Pay as You Go Cell Phone
- Customers pay more for prepaid minutes. The higher cost of each minute is often more easily absorbed into a tight budget than hundreds of dollars in deposits or a large monthly bill.
- Prepaid cell phone minutes usually expire within a fixed time-period. If a customer does not use the all the prepaid minutes before the expiration date, then the minutes are lost.
How to Choose a Pay as You Go Cell Phone Provider
Customers should select a prepaid wireless provider with care. Comparison-shopping can help consumers move through the hype of commercials to the heart of the plan.
The next section compares features between five of the most popular prepaid phone services available through AT&T, Cricket, T-Mobile, Verizon, and Virgin. Customers should evaluate which services are most important and select a provider accordingly. All the plans listed below have no contracts or credit checks.
All of this information is reported as of January 2010.
Cost of minutes that can be used anytime — day, nights, or weekends:
- AT&T – $.10 to $.25
- Cricket – doesn’t apply, no limits to time or number of minutes
- T-Mobile – $.10 to $.33
- Verizon – $.05 to $.10
- Virgin – $.05 to $.20
Nights:
- AT&T – free with certain Pick Your Plan deals
- Cricket – unlimited free nights
- T-Mobile – free nights using Pay per Day Plan
- Verizon – unlimited free nights
- Virgin – available with monthly plan
Weekends:
- AT&T – free with certain Pick Your Plan deals
- Cricket – unlimited free weekends
- T-Mobile – no free weekends
- Verizon – unlimited free weekends are available
- Virgin – available with monthly plan
Text messaging:
- AT&T – available, incoming text messages carry a charge, unlimited text messaging plan available
- Cricket – available, incoming text messages are not charged, unlimited text messaging plan available
- T-Mobile – available, incoming text messages carry a charge, no unlimited text messaging plan available
- Verizon – available, incoming text messages carry a charge, unlimited text messaging plan available
- Virgin – available, incoming text messages carry a charge, unlimited text messaging plan available
Roaming charges:
Roaming charges are fees incurred when the consumer calls or texts outside a specific geographic location. Each service offers a service map online that should be consulted before buying minutes.
- AT&T – no charge
- Cricket – $.59
- T-Mobile – no charge
- Verizon – $.69
- Virgin – no charge
Calls to information or 411 calls:
- AT&T – $1.79 per call
- Cricket – $1.00 per call or monthly $3.00 fee
- T-Mobile – $1.40 per call
- Verizon – $1.40 per call
- Virgin – $1.75 per call
Activation fees:
- AT&T – none
- Cricket – $10.00
- T-Mobile – none
- Verizon – varies, can be as much as $25.00
- Virgin – none
Common ground:
- Unlimited plans are available under all providers.
- International calls are available under all providers.
- Downloads are available under all providers.
- All five providers offer call waiting, caller ID, and voice mail. AT&T, T-Mobile, and Verizon offer 3 way calling. Cricket and Virgin do not offer this service.
- Payments may be made online or at a store to AT&T, Cricket, T-Mobile, and Verizon. Payments for Virgin Mobile must be made at a store or by auto pay.
- 911 calls can be made through all providers
It is essential for most people to have a phone service as a matter of convenience, doing business, and safety. Cell phones are the phone of choice for more and more people who may choose to make prepaid phones their means of connecting to the outside world. Pay as you go cell phones provide a means of service to individuals who may not otherwise have access to cell phone service.
In addition, prepaid services can be affordable, convenient, and a perfect fit for people with impaired credit, teenagers learning to budget cell phone minutes wisely, or people who use a phone only occasionally. Many plans are available and through comparison-shopping, consumers are able to find a plan that best suit their needs.
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