Monday, January 4, 2010

Prepaid Cell Phones 2009 Year in Review

A weak economy convinced more people to switch or consider switching to prepaid or no-contract cell phone plans in 2009. This new group of users was accustomed to using more minutes and doing more than just talking and texting. Companies responded by offering unlimited plans and offering better phones. Not everything got better however, as customer service issues remained the number one complaint. In addition, as prepaid cell phones became more popular, cell phone companies with standard plans raised their termination fees to try and lock in their customers and profits.

Better, Cheaper Unlimited Plans
In 2009, Cricket and MetroPCS continued to have success in their local markets with their various no-contract plans. These plans offered unlimited calling in limited areas. Seeing the potential, AT&T, Boost Mobile, and T-Mobile, and Verizon added unlimited calling to their prepaid and no-contract plans. Even Net10 got into the act with an unlimited plan while coming out on top in a J.D. Power prepaid cell phone survey.

Fancier Phones
In addition to better plans, came better phones. Though standard contract plans continued to offer a greater selection of high-end handsets, prepaid cell phones took a big leap forward with better cameras, mp3 music players, Bluetooth compatibility and QWERTY keyboards.

Better Cameras
Prepaid phones came with improved cameras, with resolutions of 1.3 to 2 megapixels. In addition to better resolution, more of these phones also offered on-board image editing and even basic video capability.

MP3 Music Players
More prepaid cell phones came with MP3 music players and a memory card slot to hold all that music. And to be able to actually listen to the music, more and more phones had stereo Bluetooth capability.

QWERTY Keyboards
Those who preferred texting to calling were cheered by the introduction of phones with QWERTY keyboards by all the major prepaid cell phone providers. Unlimited texting packages also made their appearance even as concerns grew that people were not only texting too much but doing it at inopportune times such as when operating heavy machinery like their cars.

Enter Straight Talk
Toward the end of the year, Tracfone brought out the Straight Talk plan based on Verizon's network. Unlimited calling was lowered to $45 per month while a cheaper plan which offered one thousand minutes and messages was available for $30. Towards the end of 2009, Straight Talk even brought out the Samsung Finesse, a smart phone capable of running widgets - small downloadable applications, though the extent of the planned offerings was unclear.
What didn't get better?

Customer Service
Complaints about customer service remained the number one complaint about prepaid cell phone companies. Calls to outsourced customer support call centers continued to be a badly-scripted play as well meaning service representatives with little authority tried their hardest to please frustrated customers. One exception to this trend was Great Call's no-contract service targeted at older adults, Jitterbug, which retained U.S. based customer support. Luckily, the phones usually worked fine.

What to Expect in 2010
Prepaid cell phones will continue to get better, but termination fees for contract plans will probably continue to go up. It will be interesting to see if the improving economy will tempt people back into long term contracts or will they be too busy paying off their debts.

About the Author
Shambhu Borah reviews prepaid cell phones on his website: http://www.best-prepaid-cell-phone-plans.com, a family guide to prepaid cell phones.

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