When it comes to cellphones, you will pay for services either with a contract plan or with a prepaid option. Each has its own advantages and disadvantages. With that being said, more people are switching to prepaid cell phones. The question is, why?
What Is The Difference?
The major difference between these plans is the price. On a monthly bases, prepaid cell phones are cheaper than a phone that runs on a contract. Prepaid plans usually lack the features found with contracts. In the past, prepaid packages offered far fewer data totals before they incurred additional charges. One reason their use is on the rise is that companies are marketing prepaid packages with greater data usage (in some cases they are unlimited).
Traditional contract cell phones used to have market control due to the quality of their phones. They often used the most recent versions of popular brands that included all of the latest features. The phones were often offered at a substantially discounted price, while prepaid phones of the same quality cost the standard price. Contracts would also allow customers to upgrade to newer models cheaply, while prepaid users had to pay full price for the most recently released models.
Today, many larger providers are marketing these phones in a prepaid package. Smaller providers that depend upon the prepaid business model are also offering the latest phone technology at more competitive rates.
Contracts Hold You Hostage
Another reason prepaid cells phone are becoming more popular is that users aren’t locked into a contract for two years. If you want to break the contract with a provider to switch to another, you will be charged a fee. Prepaid cell phones bill on a month-to-month model, allowing users to switch without a penalty.
Service Providers Have Wisened Up
Companies that market prepaid plans are providing unlimited access to the internet. They have also made improvements to their roaming capabilities as well. When coupled with prices that can be up to half the cost of contracts and the customer’s ability to switch plans have combined to grow the popularity of prepaid cell phones.
Many mobile devices now provide the same services that used to be offered by contract cell phones. This allows customers to select basic services and features that are provided by prepaid packages. Also, the novelty of cell phone features has worn off and more users are looking for simple talk and text only.
The Big Picture
It is easy to see why so many are switching. A more competitive market offers similar features at a lower price. Today’s prepaid cell phones offer the necessities along with flexibility.