For the first time, there is now more than one mobile service for every Australian, with 21.26 million mobile phone services in operation at 30 June 2007, a 7.6 per cent increase from 19.76 million the year before, according to the Australian Communications and Media Authority.
With more mobile phone services operating in Australia than people, it’s easy to conclude that mobile phones are taking over our lives.
Going prepaid has become very popular in Australia particularly within the youth markets who can’t afford long term expensive contracts and the elderly who keep a mobile phone for emergency situations.
The key differences between a post paid mobile plan and a prepaid mobile plan is that a post paid plan will usually come with a fixed term and minimum monthly spend commitment. It may also come with a new mobile phone. In fact many people use these plans as a way of upgrading their old phone to a new one.
The simplest way to describe a prepaid mobile plan, is that it is a form or credit. It doesn’t come with a phone, although in many cases, mobile phones that are sold separately come with some minimum credit (eg Virgin phones come with a sim card that has $10 credit).
Other differences include, the lack of a contract. Once the credit has run out, there is no further obligation to continue with the plan. Nowadays, prepaid plans also allow you to transfer your mobile phone number around, so many users shop around and move from one provider to the next depending on their spending/use habits.
Prepaid mobile plans are also ideal for people with bad credit. Mobile carriers do not need a credit approval, which means, no credit checks!
Many prepaid mobile phone starter kits are delivered with a phone number (or as stated earlier, you can transfer your number around pretty easily), access to a network and a certain amount of credit for calls. When all the credit is used up, recharging the account is easy, and can be done in many different ways, at any time. You can go online, pay by phone, bank machine, or with a prepaid card. Refills can also be obtained at retail outlets, service stations and convenience stores.
There are some drawbacks as in prices are supposed to be more expensive, but in truth, prepaid mobile plans are a huge market that is very competitive. Prepaid Plans compares them all in the one place for you. Providers such as Savvytel and Virgin provide great rates with long expiry’s.
Other drawbacks include the expiry period of the credit. Most cards come with 30, 60 or 90 day terms. Savvytel for instance doesn’t have an expiry period as long as there is some credit on the card. At the end of the expiry you need to top up your card otherwise it closes and you can lose the unused funds on your account. Collect calls or third-party billed calls are also not accepted.
In general, prepaid mobile phones can be the cheapest option for people who do not make many mobile calls (although there are now many plans to cater for those that do). They are handy if you only want a handset to receive calls, or take along for emergencies . Even if you run out of credit you can still receive calls for a limited time and dial out for emergency services. On the other hand, if you are a frequent caller, want extra features such as Internet access, and have several family members, employees, or business partners you want to add to your plan, you are likely better off with a traditional mobile service plan.
Before signing up for a long-term plan, think about the length of the contract and minimum total costs; find out if a phone is included in the starter package, and if there are penalties involved when leaving the plan early. Carefully weigh the pros and cons of both prepaid and traditional mobile phone plans and then decide what format would work best for you.
