By Kavita
The trend began to favor prepaid phones from 2009 itself, when reports suggested that almost 70% of new cell phone subscribers preferred to go for a prepaid connection. In 2012, reports declared that over 30% of all wireless users in the USA were using a prepaid connection.
Why do people still prefer using contract phones?
Despite the growing popularity of the prepaid version, there are many people who are still holding on dearly to their contract cell phone plans. There are certain benefits that they see in them and those are what keep them hooked.
First, with a contract cell phone plan you do not have to worry about the phone bill amount. You already know how much to expect and that means a lot to some people. They simply cannot deal with the shocks of an inflated phone bill at the end of the month after they have finished using the services.
Second, most of the cell phone companies offer discounted prices for cell phones when you agree to sign up for a long term contract (usually for a period of one to two years).
Third, some folks love the credit facility that they enjoy with contract phones. They can use their phones all through the month and have to bother about paying the bill only after they have used the services.
Fourth benefit people tend to get from using contract phones is that they might get a discount when they opt for an upgraded phone later on during the contract.
Why do prepaid plans attract people?
Prepaid plans are attractive to those who dislike being bound to yearly contracts. With a prepaid plan you are free to use and spend as and how much you want. The best advantage is that you are in total control over your cell phone expenses. You can top up your cell phone with exactly as much money that you are willing to spend on your phone expenses; not a single dollar more or less than that.
Second, you can use it whenever you want a temporary connection. Many users love the freedom that these prepaid plans provide when on vacation. They can stay connected with friends and family even when out of the country on vacation without a contract cell phone plan.
You need to pay only for the minutes you have utilized and you can always top your cell phone up if you need to use more.
In general, it is better to go prepaid when your usage is a bit undisciplined and you tend to incur over usage charges each month when on a contract plan. Usually parents of teen kids understand the importance of this suggestion as they routinely have to put up with such overage fines on their kids’ phones.
What’s better? These days, one can sign up for unlimited plans even on a prepaid option. This way you can bundle phone, text, and Web for a flat monthly rate. Best of both worlds!
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