Pre-Pay Users Should Switch To Contracts

In the US there’s always talk about using more prepay offerings (which aren’t very popular here) to sign up customers who otherwise wouldn’t sign up for a mobile phone. In Europe, pre-pay is much more popular. However, a new study in the UK finds that many pre-pay users would save money if they were on a contract. Of course, part of the end result of this study is that it pushes people to the company that ran the study’s own website, helping them pick the right mobile phone plan – suggesting that the study itself might be a bit biased.

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Comments on “Pre-Pay Users Should Switch To Contracts”

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Prashant Agarwal says:

Prepay Is Always More Expensive

Prepay is always more expensive on a per minute basis that contract plans. For example, 500 minutes on prepay is $100 with T-Mobile. On a 12 month contract for $40/m you get 600 minutes. Many people stay on pre-pay simply because it limits their spending. In Europe its easier to survive on prepay because incoming calls are free.

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