Mobile Phone Plans: Traditional versus Prepaid

The wireless communication business is like any other part of the competitive retail industry. It constantly expands, and continuously makes room for improvements and revolutionary discoveries. Upgrades and enhanced technologies hit the market at regular intervals and it is becoming more difficult to keep up with the latest trends and developments.
Mobile phones have become a way of life and most people today use a wireless handset to conduct business on the go, or enhance their social life. As business strategy develops, the wireless service providers offer their users more and more possibilities, with the prepaid mobile phone as being one of the most recent innovations.

With every progression in technology, come new rate plans, service conditions and fees. This is also the case for prepaid mobiles. Analyzing the most significant differences between a long-term plan and a prepaid plan, we notice that, while monthly cellular or mobile phone plans, as a norm, tie their user into a one- or two-year service contract, the prepaid plans do not require a set time commitment. Knowing exactly how much you are spending, you can better control your cost, and there is no monthly bill to worry about.

Prepaid mobiles are ideal for people with bad credit. The carriers do not need a credit approval, which means, no credit checks! They do not demand a deposit and do not surprise you with hidden fees. There is also no termination penalty, as there is no contract.

Many prepaid mobile phone starter kits are delivered with a phone number, access to a network and a certain amount of credit for calls. When all the credit is used up, recharging the account is easy, and can be done in many different ways, at any time. You can go online, pay by phone, bank machine, or with a prepaid card. Refills can also be obtained at retail outlets, service stations and convenience stores.

With every great invention come drawbacks. The average charge per minute for a pay-as-you-go phone is higher than what monthly mobile plans bill for, and if you do not use the phone for an extended period of time, you may lose the unused funds on your account. Collect calls or third-party billed calls are also not accepted.

In general, prepaid mobile phones can be the cheapest option for people who do not make many mobile calls. They are handy if you only want a handset to receive calls, or take along for emergencies . Even if you run out of credit you can still receive calls for a limited time and dial out for emergency services. On the other hand, if you are a frequent caller, want extra features such as Internet access, and have several family members, employees, or business partners you want to add to your plan, you are likely better off with a traditional mobile service plan.

Before signing up for a long-term plan, think about the length of the contract and minimum total costs; find out if a phone is included in the starter package, and if there are penalties involved when leaving the plan early. Carefully weigh the pros and cons of both prepaid and traditional mobile phone plans and then decide what format would work best for you.