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New Prepaid Wireless Users Outnumber Postpaid For First Time
While data exceeds voice consumption for first time as well...
by Karl Bode Monday 05-Apr-2010 tags: business · wireless · stats
Tipped by Tcomp See Profile
Telecompetitor directs our attention to a new study (pdf) stating that during the fourth quarter of last year, new prepaid wireless phone customers outnumbered new postpaid customers for the first time ever. According to the report, prepaid service -- which often offers users less-expensive service with no contract, accounted for nearly two thirds (65%) of the 4.2 million net subscribers added by in the fourth quarter of 2009. While prepaid service grew at a 17% clip during the fourth quarter of 2009, postpaid service grew at just 3%. In other news of wireless industry change, a second report notes that global mobile data consumption exceeded voice traffic last year for the first time ever.

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kdwycha

join:2003-01-30
Riverview, FL
Reviews:
·Bright House
·Verizon FiOS

Really isn't a bad deal...

I got a Straight Talk phone back in December and love it. It does everything I need it to do. I got the Samsung phone with the slide keyboard and stuff and it works great. Plus it works on the Verizon network and is only 45 a month for unlimited Voice,Text, Data. The web browsing is a bit useless but I use it sometimes for things but you can't beat that price for unlimited voice. I think Verizon charges 69 dollars for unlimited voice and I spend a lot less for the same network.

LoPhatPhuud
Premium,VIP,MVM
join:2002-01-06
Albuquerque, NM
kudos:23
Reviews:
·Comcast

1 edit

Re: Really isn't a bad deal...

said by kdwycha:

I got a Straight Talk phone back in December and love it. It does everything I need it to do. I got the Samsung phone with the slide keyboard and stuff and it works great. Plus it works on the Verizon network and is only 45 a month for unlimited Voice,Text, Data. The web browsing is a bit useless but I use it sometimes for things but you can't beat that price for unlimited voice. I think Verizon charges 69 dollars for unlimited voice and I spend a lot less for the same network.
I'm on Straight Talk too, with the same phone and the same plan. I primarily wanted voice and text messaging.The Web (slow as it is) is a bonus and the price is great.
--
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burgerwars

join:2004-09-11
Northridge, CA

It doesn't surprise me.

For a heavy user of cellphone services, postpaid is probably better. But for a whole group of users who discovered they've lived without cellphones in the past without perishing, can have a cellphone handy for emergencies, or just occasional calling, with a prepaid plan. With the economy still in the dumps, this makes more sense.

Why spend $29.99 - $39.99 per month for the most bare-bones T-Mobile postpaid plan, when a $10 refill can extend your minutes for 90 days (or a whole year if your cumulative top-ups are over $100). Do the math. Prepaid is cheaper, unless you decide you can't live without an iPhone.


tim_k
Buttons, Bows, Beamer, Shadow, Kasey
Premium,VIP
join:2002-02-02
Stewartstown, PA
kudos:13

Re: It doesn't surprise me.

said by burgerwars:

For a heavy user of cellphone services, postpaid is probably better. But for a whole group of users who discovered they've lived without cellphones in the past without perishing, can have a cellphone handy for emergencies, or just occasional calling, with a prepaid plan. With the economy still in the dumps, this makes more sense.

Why spend $29.99 - $39.99 per month for the most bare-bones T-Mobile postpaid plan, when a $10 refill can extend your minutes for 90 days (or a whole year if your cumulative top-ups are over $100). Do the math. Prepaid is cheaper, unless you decide you can't live without an iPhone.

Unlike so many other people I know, I rarely use my cell phone and don't wish to spend even more money on a data plan. Even with a discount, I felt I was overpaying for the little use my phone got so I just switched to a basic pre-paid plan. Verizon didn't make things easy. They wouldn't port my number from my regular plan to a new pre-paid Verizon plan. They also prevent you from connecting to your online contacts backup and won't allow the phone to transfer files over blue tooth. They must not like pre paid plan people very much
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tmc8080

join:2004-04-24
Brooklyn, NY

next stop: smart phones

one way or another.. those full featured wifi enabled smart phones will make their way to prepaid whether they have to be hacked or not.. so the carriers might as well make provisions for it to happen sooner rather than later.
JazzJRabbit

join:2003-09-27
Naperville, IL

Re: next stop: smart phones

You can use smartphones on prepaid plans already. The only problem is you can't use data because it's either not available at all (T-Mobile) or very very expensive (Page Plus or Mingo Wireless).
skurfa

join:2006-03-10
Yorktown, VA
There is data on Boost prepaid, included in the 50 bucks a month unlimited, it's not fast, but fine for email and Twitter or Facebook updates, maybe checking the weather and when the i1 comes out in the next month or so you will have a Motorola Android smartphone for that network, pretty good deal me thinks
--
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Romney2012
Defeat Obama 2012-Chg we can believe in
Premium
join:2002-03-03
USA
kudos:4

Growth of prepaid means competition exists for cell calls

This tremendous growth in prepaid cell plans means that there IS competition in the mobile marketplace. And the prepaid vendors were and will continue to pressure Verizon & AT&T to lower their costs.
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pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Growth of prepaid means competition exists for cell calls

said by Romney2012:

This tremendous growth in prepaid cell plans means that there IS competition in the mobile marketplace. And the prepaid vendors were and will continue to pressure Verizon & AT&T to lower their costs.
I'm pondering making the switch for us as well. The only thing holding me back is the fact that we use AT&T because 99% of the people my wife talks to on the phone at other AT&T customers. I need to calculate if the cost of that number of minutes is less than the price of prepaid service.
--
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komodo7d

join:2006-10-17
Lafayette, LA

Re: Growth of prepaid means competition exists for cell calls

check out the AT$T prepaid plans....offers free mobile to mobile

pnh102
Reptiles Are Cuddly And Pretty
Premium
join:2002-05-02
Mount Airy, MD

Re: Growth of prepaid means competition exists for cell calls

said by komodo7d:

check out the AT$T prepaid plans....offers free mobile to mobile
Thanks for the tip. I'll definitely look into it even though I am skeptical.
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"Net Neutrality" zealots - the people you can thank for your capped Internet service.
browniept

join:2009-05-22
Dover, AR

2 edits

Re: Growth of prepaid means competition exists for cell calls

The big factor on that is how often you use your cell. I'm a sporadic user (1-3 times a week). The prepaid (GO phone)works great for me (About $120 a YEAR). If you live on your phone, it's can cost you more. That $1 a day and $.10/minute for calling/receiving non AT&T numbers adds up in a hurry.

SoonerAl
Old enough to know better
Premium,MVM
join:2002-07-23
Norman, OK
kudos:5

1 edit

Re: Growth of prepaid means competition exists for cell calls

said by browniept:

The big factor on that is how often you use your cell. I'm a sporadic user (1-3 times a week). The prepaid (GO phone)works great for me (About $120 a YEAR). If you live on your phone, it's can cost you more. That $1 a day and $.10/minute for calling/receiving non AT&T numbers adds up in a hurry.
Same here...

I went with the flat $0.25 per minute option with our AT&T GoPhone. I did an analysis before I switched to a GoPhone and based on our usage, ie. my wife and I, over a years usage that plan actually worked out better than the $1 per day + $0.10 per minute.

We even used our GoPhone while we were in Mexico for 9 days back in late February. No roaming charges, just the flat $0.25 per minute.
--
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Fisamo
Premium
join:2004-02-20
Apex, NC
Competition?

The prepaid vendors are reselling VZW and ATT network capacity. If they start to feel the pinch of 'too many' subs going to prepaid, they'll restructure their wholesale offerings to compensate. Nevermind that they're driving this behavior with mandatory data plans, etc...
JazzJRabbit

join:2003-09-27
Naperville, IL
Reviews:
·WOW Internet and..

Re: Growth of prepaid means competition exists for cell calls

What he said. There is very little competition if any. Out of all major wireless providers that have their own networks only two provide decent prepaid plans - TMobile and Boost (Sprint spinoff). Everyone else even if they have prepaid plans available also institute silly $1 daily usage fee meaning that not only you get charged for your call time, you also get charged $1 a day if you make a call meaning if you make a call every day your plan will cost you $30 a month plus actual airtime used. Not attractive plan at all. Best deals come from network resellers, but as Fisamo pointed out if the network owners such as Verizon or ATT see their revenue drop too much they are just going to raise contract prices for resellers thus making them less profitable/attractive to consumer. ISP and wireless market in US is completely screwed up. For the moment however, I'm enjoying my prepaid plans, I'm just hoping that it will last as long as it can.
sonicmerlin

join:2009-05-24
Cleveland, OH
kudos:1
said by Romney2012:

This tremendous growth in prepaid cell plans means that there IS competition in the mobile marketplace. And the prepaid vendors were and will continue to pressure Verizon & AT&T to lower their costs.
You do realize the entire prepaid market is entirely dependent on the incumbents, right? There is no competition in the wireless market.

Lokro
Premium
join:2002-12-28
Loveland, CO

Easy choice

I use T-mobile prepaid. It gets the job done perfectly. I don't use my cell phone that much. I think I pay about 10 bucks a month. Just doesn't make sense financially for me to go postpaid since I don't use the phone that much.
megarock

join:2001-06-28
Catawissa, MO
Reviews:
·Charter
·Brown Dog Networks
·Access US
·Google Voice

Wow, you noticed?

Seriously, why would I want to pay 69.99 a month for voice, another 20 for text and voicemail and still get nailed one way or the other. If I move it don't matter to you - I'm still screwed under your contract.

Or I can go with a company like Cricket and pay 30.00 a month and have everything I need and if I move from their coverage area no big deal, I just stop paying the 30.00 a month.

People don't want contracts. People want a basic rate for a basic phone. If I need the bells and whistles it's not much more.
MTU
Premium
join:2005-02-15
San Luis Obispo, CA
Reviews:
·AT&T Yahoo

Porting number to prepaid?

Possible? Since the cell has replaced the home/business phone in my life I cannot afford to drop the contract if porting is out.

And as said before, in the U.S. four players control the access.

PS - Maybe why Carlos Slim Helu is the 'richest man' (Tracfone)

exRolman

@embarqhsd.net

Re: Porting number to prepaid?

Tracphone supports porting. They ask the zip code of the place where you live. Most MVNo's support porting. PagePlus in my area supported the cmda Black Berry 8250 phone initially. Now they have stopped.

burgerwars

join:2004-09-11
Northridge, CA
T-Mobile prepaid supports porting. They don't charge a dime either. Been there. Done that.

shdesigns
Powered By Infinite Improbabilty Drive
Premium
join:2000-12-01
Stone Mountain, GA
Reviews:
·Atlantic Nexus
I ported my Sprint # to an AT&T Go phone. You should be able to port a land line # also.

Costs me about $8.25/month. WIll be even less later as i bought more minutes than I need.

Works fine and the phone was $20.
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BlitzenZeus
Burnt Out Cynic
Premium
join:2000-01-13
kudos:2
Reviews:
·Frontier FiOS
I was postpaid T-Mobile for a couple years, and but was using one of their lowest plans while still finding it costing me more than I used just to carry something as simple as data.

I switched to T-Mobile prepaid, and haven't cared about the data for how little I really needed to use it. The most I'll spend per year is around $100, and possibly as little as $10 per year to just maintain my previous minutes. I also don't chat on the phone, or text all day long so it works well for me. In reality I would be paying more in taxes per year on postpaid than I'm paying in total now as prepaid.

It's the big carriers who are forcing overpriced packages that are the issue, and when the piggyback carriers can offer the same thing for less it just shows you that the big carriers are just screwing the consumers.
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io chico
Premium
join:2003-12-30
Magalia, CA
Reviews:
·DigitalPath

Bring in my own phone?

Can I use a phone that I purchase or bring in my existing phone to one of these plans? Everytime I look at these plans I get underwhelmed at the phone choices.

I don't need data and right now I'm grandfathered in with at&t so I'm not forced to have data. When my contract is up in Nov, I want to leave at&t before I get hit with that extra $30 monthly.
--
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BlitzenZeus
Burnt Out Cynic
Premium
join:2000-01-13
kudos:2

Re: Bring in my own phone?

GSM phones are universal for gsm carriers as long as they are unlocked, and even if you also have something a verizon cdma phone you'll find that you can use it with a piggyback carrier like straight talk, page plus. or cricket to name a few.

io chico
Premium
join:2003-12-30
Magalia, CA

Re: Bring in my own phone?

Good news, thank you.

prpdusr

@netpath.net

check this out

try cellguru.net or »howardforums.com/forumdisplay.ph···14&f=325

For using your own phone make sure it has a sim card. Some cdma carriers like pageplus can activate other verizon or sprint phones. I have simple mobile for 40bucks/month with unlimited talk/sms everywhere and it runs over tmobile
bobgaud

join:2010-01-13
Lynn, MA

Verizon post paid to prepaid

Had a Verizon postpaid for about $36/month with Co. discount, but I NEVER used more than 70 of my 450 minutes in all the time that I
had it. Went to prepaid the beginning of the year. Went to Verizon Co. Store. They ported my number no problem. Prepaid cost so far: 15 dollars!! Just topped up with 100 dollars, now good for a year!!

otter

@174.137.72.x

prepaid phones

i recently dropped both my verizon postpaid phones due to horrible service and high prices.

i bought a verizon prepaid samsung intensity because i need to ck email no matter where i am.

i dont know why, but the actual service is 1000% better, cking email is no prob at all using mobile sites and best of all the cost is nearly nothing compared to my postpaid verizons.

i sometimes go 6 weeks without turning on my cell, that 6 weeks used to cost me over $200. now that 6 weeks costs me nothing.

otter

Tamarisk

@impulse.net

GoPhone

I've been an AT&T GoPhone user since 2007. Previously had Boost Mobile for two years prior to that, but phone selection was poor - still is. Ported my Boost number to AT&T w/o any problems. GoPhone is great. You can use any unlocked GSM phone. They have packages for text and data. Sure the voice is a little pricey, but for someone who rarely uses the phone, it makes perfect sense for me. The $4.99 200 texts a month package is awesome and any unused balance rolls over, so I've built up a nice little stash of texts after a few months. Prepaid is very popular in Europe and as more and more people examine their monthly costs of everything here in the US, I think it will become more so here also.
slyphoxj

join:2002-06-23
Brook Park, OH
Reviews:
·Time Warner Cable
·WOW Internet and..

1 edit

Been doing prepaid for over a decade

I've never had a contract. Yep, that's right... I'm well into my 30's and have been at my job for almost a decade now. My first phone was a $59.99 Airtouch phone-in-a-box deal.. an Audiovox AMPS-only brick (almost literally the size of a brick ). I switched that phone to Alltel when Verizon took over the A-side AMPS and CDMA here and changed the airtime expiration period from 6 months to 60 days . I then went to Simple Freedom for their $0.25/min airtime rate and nationwide coverage with free roaming on Verizon. I then tried Tracfone for a while about 5 1/2 years ago, then went back to Simple Freedom (and drew my current number), then ported my # to Virgin Mobile for about a year, then ported it to Page Plus where I've been for the last (a little over) 2 years. I also had a AlltelU line for a while and have an active T-Mobile To Go phone in addition to my Page Plus phone.

Overall, I'm happy with Page Plus, even though I've got some gripes with P+. The Verizon coverage, overall, is better than that of the other networks I've been on.

I guess it's just me... I've got a landline with unlimited local calling at home and my immediate family members (except for one) all have landlines as their primary phone. At work I've got a landline on my desk I can use to call home or places near home. And I don't text enough to the one who uses a cell primarily to (yet) justify getting a texting pack.

So far, I've managed to get by for less than $20/month... try doing that with a contract plan!

EDIT: I don't recall ever spending more for any of my phones than the ~$80 (plus tax) I spent for my current phone that I'm using with Page Plus.
dmoisan

join:2003-03-25
Salem, MA

T-Mo to Go is a great value!

I've had T-Mo to Go for as long as I've used a cell phone (5 years) and it's a great deal. If you stay on the plan and refill your minutes for a year, you get Gold Rewards rates.

Doesn't matter if you have the same phone; I'm on my fourth phone, third with the same plan.
RolandP

join:2009-08-15
New York, NY

Go Prepaid!

Prepaid is definitely the way of the future if we look at world-wide trends. In the States all the advertising money is going into telling us that being tied into a lengthy, expensive and unfair contract is okay as long as you get the latest glitzy gadget for you trouble. Never mind the fact that that gadget will cost you three times the real value over a two-year contract...
Anyway, I'm a proud prepaid user, currently with NET10, and will never sign a cell contract! It's just stupid to do so when there are so many better, cheaper alternatives out there.

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