How to compare prepaid cell phone plans

Cell phones with their ability to make and receive calls from virtually anywhere have become a staple of modern life. Cell phones add an element of mobility, allowing users to talk, text, and even surf the Internet on a whim, wireless, no physical connections and as is increasingly common no monthly bills. Explore various aspects of prepaid cell phone plans, including the history of prepaid phones, types of plans and some of the benefits and considerations for their use.

History

Although prepaid cell phones may seem like a byproduct of a booming industry of mobility, the prepaid plan dates back almost as far as services billed (traditionally) post-paid. The first recorded American patent for prepaid service was delivered to a small carrier, Banana Cellular in 1993. This plan allowed customers to pay for a predetermined amount of usage in advance, but they were allowed to connect to other cellular Banana clients. Prepaid wireless has become closer to normal postpaid in 1994 as Houston Cellular Telephone Company based in Houston has started offering a prepaid option for customers with enough to open an account post-paid credit. This service, known as Call Track, stimulated the proliferation of prepaid cell phone service as it turned out several more cost-effective than more traditional postpaid times.

Function

When a customer buys and activates a new-prepaid cell phone, the new line is deployed by the carrier, in the same way, as accounts of traditional post-paid. Basic information taken from the customer; the electronic serial number of the mobile communication device (ESN) recorded, and telephone number is assigned to the set. Rather than subject the cell phone plan monthly billing, however, a charge is collected in advance by the customer and putdown. Proprietary software monitors the use of the phone, net of expenses (as defined in the agreement of the prepaid cell phone user) on the account that the phone used. When the account reaches a low balance, the software notifies the client. When the balance reaches zero, the software disables the cell phone. In some cases where the customer agrees in advance, the software can also try to run automatically replenish the account using a credit or debit card provided to avoid service interruptions.

Features Photos

Prepaid cheap cell phone plans have traditionally offered their user's little sparse services, allowing voice calls only and often at a much higher cost service billed. The popularity of prepaid cell phones, however, has prompted carriers to offer more services in the prepaid cell phone plans, and many carriers now offer text messaging (SMS) and data services to prepaid customers. Many plans prepaid debit the account for every minute of time voice conversation or data use, and debits the account of independent fees for incoming and outgoing text messages usually lower. Some carriers also offer unlimited use of certain services for a fee paid extra advance, such as the use of unlimited data or peak time voice chat for about $ 1 per day unlimited prepaid.

Benefits

Prepaid cell phones offer mobility to customers who are not eligible for traditional postal services billed due to lack of credit, low income or homelessness. They are often inexpensive and easy to obtain, and many do not require a credit check or detailed information to enable it. Once activated, prepaid cell phones allow users to control spending, but rather than accumulating huge bills (and sometimes unexpected), prepaid cell phones simply stop working when a customer reaches the preset spending limit. At the other end of the spectrum, customers who rarely use their phones as customers who maintain a mobile account for emergency use only may use prepaid accounts to avoid high recurring bills for phones that rarely used. Finally, the nature of prepaid cell phone plans means that there is no contractual obligation to keep the phone for any length of time, and prepaid customers are not subject to early termination fees that haunt the customers paid.

Considerations

While there are many advantages to a prepaid cell phone plan, these plans are not suitable for all mobile phone users. Prepaid customers often faced with a very limited choice of phones, with most phones or cold trendy reserved for holders of postpaid accounts. Prepaid phones are often more expensive, too, that carriers of profits derived from post-billed accounts help fund the initial purchase of the device cell phone prices. Finally, prepaid cell phone plans can be considerably more expensive for heavy users, as per minute and per message fees are higher for prepaid users and consumers post charged.