Free Cell Phones (and why they're not really free)

In this day and age almost all people have a cell phone, using it to connect with their friends through web access, talking, and texting. Prepaid cell phones will vary from standard cellular phone service providers. You do not have to sign a contract with prepaid phones which will mean there is zero early termination costs.

Cell phones can easily run you a pretty penny, considering it is possible to carry them anyplace, and they are so easy to break. But few folks choose to shell out a ton of money on a cell phone, considering you will need to purchase the cell phone, service, and if you decide to then get insurance on the phone also.

Cellular providers will offer you discounts, rebates, and special plans for the handsets just to get you to pay money for them and sign a lengthy two year arrangement with them. The companies make you sign the contract to get their money back from the discounts, special plans, and rebates. In two years, your monthly costs will eventually pay them back plus turn a profit.

Using prepaid mobile phones, there is simply an activation fee and the charge for your web access, text messages, and minutes. There is no contract, so you could deactivate it at any time with out a termination payment. Given that there are no guarantee with a prepaid cellphone that the company will get their money back their phones cost more than the phones of cell cellphone providers that require contracts. Even though the older model phones may be cheap they are also somewhat more fragile. Prepaid phones can cost from $10-$400.

Prepaid cellphone service providers hope that you will stay with them long enough to make up for the activation charge, though they recognize not all people will stay with them. They hope that you as their customer will stay with them for at a minimum 4 months and pay for month to month minutes to cover their payments for everything. Stores are only authorized to offer their buyers certain quantities of the prepaid phones to save the service providers money.

Ultimately, though, prepaid cellular service plan is considerably cheaper than the classic contract service. You might have a higher upfront cost from a cellphone that isn’t subsidized, but you will pay significantly less for your service over the life of the cellphone. Many people pay upwards of $95 a month for their contract cellular service plan. Compare that with prepaid cell service plan where you are able to get an unlimited minutes month to month plan for a flat $45. That is $45 flat. There’s no hidden taxes or payments like in standard plan service plan.