Prepaid Cellphones - Is One Right For You?
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I have been using prepaid cellphones for about 4 years. For my family and I this has worked out extremely well. But we are different than many others who use their cellphones as their primary phone and who also need to text 24 x 7. I have been seeing the ads from Verizon on TV and also just read an article over at the New York Times, which covers the question. Is a prepaid cellphone right for you?
The NY Times article states:
But now these pay-as-you-go phones are winning over fans for different reasons — recession-battered consumers are buying them as a way to cut costs and avoid the lengthy contracts and occasional billing surprises that come with traditional cellphone plans.
“Frugal is the new chic,” said Joy Miller, 33, a piano teacher in Aubrey, Tex. After almost a decade on contract plans with Verizon Wireless, Mrs. Miller and her husband decided this month to test-drive a few prepaid plans, including MetroPCS. “In today’s economy, it’s not cool to pay $120 a month for a phone. It’s a waste of money.”
Although prepaid phones remain a fraction of the overall mobile phone market, sales of the category grew 13 percent in North America last year, nearly three times faster than traditional cellphone plans, according to Pali Research, an investment advisory firm. For the first time in its history, T-Mobile has been signing up more new prepaid customers than traditional ones. And Sprint Nextel is betting that a new flat-rate prepaid plan will help it wring more value from its struggling Nextel unit.
Both my wife and I have our own prepaid cellphones but we each have our own separate plans. We are with AT&T which offers two different plans. My wife uses the flat rate which is .25cents a minute. I user a $1 access only when I use the phone and .10 cents a minute. We have a broadband connection through Vonage and opted for the $14.99 plan which provides 500 anytime minutes per month. With tax and fee we pay about $18 a month for Vonage.
So how much are we paying for two cell phones and Vonage per month? Under $40 total. Again, we are not big telephone users nor do we text at all.
So what about you? Would a prepaid cell phone work for you? Or do you need the convenience of a full plan and contract?
Comments welcome.
11 Comments
Prepaid Cellphones - Is One Right For You? ~ The Blade by Ron …
February 25th, 2009
at 7:41am
[...] Prepaid Cellphones - Is One Right For You? ~ The Blade by Ron … [...]
GOOSE
February 25th, 2009
at 7:11pm
I’m not sure about prepaid but has anybody tried Consumer Cellular which is offered by AAA Insurance? Looks like a good deal…….
Ron Schenone
February 25th, 2009
at 7:40pm
Thanks Goose for the information.
FedericoB
February 26th, 2009
at 10:34am
Last year I was in the Dallas-FW area, and I needed a prepaid card because it’s the most common in Italy, where I’m from, and because I use the phone very little, about 5~15$/mo mainly for texts. So I used the AT&T PayAsYouGo for a couple months and they raised their fees. So I switched to Locus Mobile (who? what?) which uses AT&T’s network.
Low-cost, good service, no monthly fees, just perfect.
I already have an unlocked phone so I don’t have to worry about any contract.
Adril
February 27th, 2009
at 6:04pm
I definitely think prepaid’s the way to go these days. They’ve been popular in Europe and Latin America for years and folks don’t have the problems we have with annual contracts. I recently bought a prepaid cell from TracFone for my Mom and she loves it. Only cost me $10 and the reception’s great (its a Nokia). She uses about 350 minutes a month so it’s totally affordable for a retired person. The best part is that she’s not tied to any provider and she can update her minutes by just buying a card in-store, loading online or by phone. The key to today’s connectivity is frugality and convenience. Prepaid cell plans offers both. Go prepaid!
Ron Schenone
March 26th, 2009
at 11:32am
Hello Sandy,
Great point. There are several options available. First, buy $100 which are good for 365 days. Setup a online account to be notified when the 365 days are going to be up. If you buy another $100 before the first minutes expire, they are rolled over.
I look at it this way. The cost of having a cell phone is less that $10 a month. Many other supposed plans cost $10 a month than charge you .25 cents a minute as well.
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April 10th, 2009
at 12:01am
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Wireless Cell Phone Plans - Prepaid Or Postpaid? | Computer Tech Blog
April 12th, 2009
at 6:49pm
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jv1000
June 22nd, 2009
at 9:39pm
I’m done with $350+/month bills with Verizon. I’m looking at a new one, Buzzirk Mobile. They launch July 1, 2009. http://www.UnlimitedMobile.tv
Rosie
June 28th, 2009
at 5:19pm
I am a college student who is super tight on money! I don’t have a job and have to pay for my classes and text books. Once I started college, I was no longer able to afford the costly prices of my contract cell phone. My friend told me about TracFone, which is a prepaid wireless company. I pay only for the minutes that I use. I can also text and take pictures with my phone. It’s so awesome! I would recommend it to anyone on a budget.
Ron Schenone
June 28th, 2009
at 6:55pm
Hi Rosie,
Thanks for the info.