what does prepaid mean for a phone

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A prepaid mobile phone is amobile phone for which credit is purchased in advance of service use. The purchased credit is used to pay for mobile phone services at the point the service is accessed or consumed. If there is no available credit then access to the requested service is denied by the mobile phone network.

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A prepaid mobile phone is a mobile phone for which credit is purchased in advance of service use. The purchased credit is used to pay for mobile phone services at the point the service is accessed or consumed. If there is no available credit then access to the requested service is denied by the mobile phone network.

With a prepaid cell phone, you’re not locked into a multi-year plan with a set number of minutes per month during specific calling times, additional charges if you exceed the limit and a costly fee if you break the contract. You’re free to talk whenever you want, as long as you want, until you run out of minutes.

Most prepaid services come with at least the phone plan features you know and love : Voice, SMS and a data inclusion. Those prepaid service features (and any others you have) will (almost always) reset at the end of your recharge expiry. Picking the wrong recharge expiry on the most common plans can cost you $40 a year.

Reported cell phone use per month: 218 minutes by prepaid phone users versus 528 by users of traditional plans. Average amount prepaid users spend on additional minutes per month: $38. Where prepaid users buy phones with prepackaged minutes: Nearly 60 percent at retail stores and 25 percent via the Internet.