More and more people are switching to prepaid cell phones instead of signing up with one of the various mobile providers for a two year or three year contract. There are a lot of good reasons for this and some not so good. Prepaid cell phones appeal to many subscribers who need mobile service for some or all of the following reasons:
- Do not want a contract
- Temporary service
- Do not make many calls
- Want to pay as you go
- Bad credit
- Traveling in another country
- Emergency calls only
If you are the type of person who makes a lot of calls, sends a lot of text messages or uses the data services that the carriers provide, you will definitely need to subscribe to some sort of monthly plan which will usually involve a contract with your local mobile provider. Otherwise your monthly bill will be just to costly for you to be able to afford to make the payments on your phone.
However if you only need a phone for occasional calling or perhaps emergency calling, then a pay per use phone will be fine. For many people who are tired of long three year contracts that tie you to one provider, a pay per use phone is a great way to go.
Traveling In Different Countries
As a writer living and working in Canada, I frequently travel to the United States for a vacation and to visit relatives. Until recently I was very frustrated with my provider due to the high charges for using my mobile phone in the US even with a roaming plan. After speaking with a number of my American friends who were in disbelief at the high rates that we pay for local and long distance service, I decided to look into a US prepaid cell phone for use while I was traveling in the US.
Imagine to surprise, I was able to pick up a phone for $10.00 and $.13 a minute ( which by Canadian standards is cheap, although considered an expensive per minute charge in the US). I can use this mobile phone anywhere in the US, no long distance any where and I can make calls to international numbers from the US as well for the same low price!
It Gets Better
I was still concerned about my family having to place a long distance call to reach me on my new prepaid phone while I am traveling in the United States. It turns out that I can subscribe to up to three local numbers in Canada which my family and friends can call at no cost to them. The call will then be call forwarded to my US mobile phone at no additional charge. I just pay the regular per minute fee that I would be paying if I was originating the call. Now how great is that?
I plan to call forward all of my local Canadian callers to my local number in Canada provided by the prepaid phone so that none of my business associates will have any difficulty in reaching me. By the way it also has voice mail as well and I can send text messages at a reasonable price as well. What a deal and convenient since I can call a 1-800 number to make changes or I can sign on to a site on the internet and make my own changes to my service including purchasing additional minutes if needed.
Finally for the $10.00 I paid for the phone, I also received a car charger as well as a wall charger and a hands free ear bud with the Samsung phone. The phone is a basic phone, but it meets all of my needs for temporary service while in the US. For the record I use WiFi for all of my data communications while traveling so I do not need to be concerned with a data plan.
Equivalent Service in Canada for American Travelers?
There is no equivalent plan in Canada and the plans they do have are much more expensive. The least expensive phone I could find on the Bell network was $79.95 to purchase it and you had to buy your own car charger if you need this device for $39.95! What a difference!
Fees for making calls are $.30 per minute for local calls and $.40 per minute for Canadian long distance minutes. You also pay $.15 per text incoming as well as outgoing.
Not only are prepaid plans much more expensive in Canada than they are in the US you can quickly see that you might want to consider a monthly plan if you plan to be in Canada for any length of time. Also even if you only have the plan for emergency calls, you will lose any minutes that you have not used at the end of the expiration of your minutes.
Not a very good deal and the obvious answer is that we need a lot more competition. Speaking of competition, There are a number of other mobile carriers in Canada that offer prepaid services at slightly better rates. Some are as low as $10 / month and $.10 per minute. Still when you think about it, that is $1,20.00 even if you do not use the phone at all! How about that for a deal, just kidding. Perhaps it is a bit better than a regular plan.
Assess Your Calling Pattern
Before you renew your next 2 or 3 year contract with one of the carriers in the US or in Canada, take a look at your calling patterns and assess what your bill would have been had you been using a prepaid service. The answer for each person will be different since their calling patterns are can really vary a lot.
For some people, a prepaid phone will be totally out of the question, while for others it is a no brainer since they do not make many calls or send many text messages. You can compare your past calling pattern to see which type of plan might have been better for you. However you should also give some thought to the number of calls you will be making in the future as well. If it is the same , no problem, on the other hand if you will be making more calls and sending more texts than you did in the past, you may want to re-think the prepaid cell phone idea.
Comments and suggestions are welcome. Our readers will appreciate knowing about any deals you have found!



