Do you want a phone where you buy more minutes when you run out? Prepaid plans work a lot like calling cards – users purchase a fixed number of wireless minutes or a fixed dollar amount before making any calls. Generally, the right to use these minutes will expire after a fixed time period. Take time to look into the different types of plans.
Do you want a flat-rate, no contract plan? As with contract plans, rebates and packages fluctuate, so shopping around is essential. Before buying, be sure to compare plans in order to find the one that best fits your needs.
You may want to consider the following questions:
- How often will you use the phone?
- Will you be using the phone primarily for local calls or long distance?
- When will you make most of your calls—day or nights and weekends?
- Are you willing to pay a higher per-minute rate in order to avoid a contract?
- Do you want a basic phone, or one loaded with high-tech features?
If you are looking for the high-tech phone with added features like picture phone, consider a contract plan. Add-ons for prepaid service, like photo messaging, may be pricey, although prices have been coming down as pre-paid service strives more to look like contract service. If you are planning on using your phone for more then a few minutes a day, consider a very basic service contract with free nights and weekends If you are planning on moving around the country and making long distance calls, be sure the pre-paid plan includes nationwide calling. To learn more about these plans see the Wireless Service Consumer Tips.
If prepaid wireless service looks like what you need, use this quick and simple checklist to be sure it is right for you and that you get the best deal.
Compare the per-minute charges. Per-minute charges on prepaid plans are often more expensive than similar contract plans. You pay significantly more per minute for the no contract, no credit check, pay-as-you-go approach. If you plan on using your cell phone frequently, a contract plan is likely to be a better deal for you. Remember, prepaid minutes expire. Unused minutes often expire after a certain time period, so it will be necessary to purchase additional minutes on a periodic basis, whether you use them or not! Compare the expiration periods across plans.
Look for additional charges. Prepaid plans may "dock" your minutes for checking voice mail, using add-on features. Are long distance calls included in your plan or is there an additional charge? Ask the sales representative about taxes, fees and surcharges that you do not see.
Check out the coverage area. Read the fine print, roaming charges may quickly deplete your prepaid account. Look at the coverage maps of the competing prepaid services. Make sure you choose a "home" area that offers service where you need it.
How easy is it to "recharge" your prepaid minutes? Some plans allow you to use a credit card to purchase additional minutes over the phone or Internet. If you don't have a credit card, you'll need to go to a store to purchase minutes.
Read the details of the plan very carefully. Look for things like: restrictions on minutes, the per-minute charge for calls, roaming charges, set-up fees, and long distance charges.
Poor Coverage and Call Quality. Prepaid customers experience the same frustrations with coverage and call quality as contract customers because prepaid services uses the same networks. Several of the familiar name wireless phone companies are now offering prepaid service; therefore prepaid service is on the same network. There are a few companies that specialize in prepaid service. These providers lease space on the networks of other cell phone companies.
