The Advantages and Disadvantages of Prepaid Data Plan
Prepaid data plans are a great way to save money on mobile devices. The mobile industry has a lot of competition. They try to earn your business by offering prepaid data plans that give you huge discounts compared to their traditional postpaid counterparts.
In order to make sure you get the most for your money, it’s important to understand what prepaid data plan have to offer. Most carriers also call them pay-as-you-go or prepaid plans, but the underlying concept is the same: you purchase a data pass in advance and add it to your device for a certain amount of time.
Suppose you don’t have a solid credit history. In that case, prepaid data plans allow you to experience wireless high-speed internet without worrying about going over your data limit or dealing with termination fees. This allows you to use mobile data without being locked into a long term contract, which requires having a good credit rating.
Here are the advantages and disadvantages of prepaid data plan;
ADVANTAGES OF PREPAID DATA PLAN
- Prepaid data plans require no credit check or security deposit, making it easier to get a new service line than postpaid plans. There is usually an activation fee that can range from $30-$100 however. Also, you will need a valid Social Security Number with a good credit history to be eligible for a postpaid plan.
- Prepaid data plans are perfect for people on a budget or on a fixed income, like students or seniors who don’t want the additional stress of figuring out later whether they can afford their monthly service bill.
- Most prepaid data plans offer unlimited talk time and texts, while there is usually a limit on the data. So you can still stay in touch with friends and family without worrying about exceeding your plan’s limits.
- Prepaid data plans are beneficial for light users who use their mobile devices to make calls but rarely check emails or browse web pages using mobile data.
- If you travel internationally, prepaid services offer an easy-to-use alternative compared to postpaid plans because you only pay for the services you are using.
- Prepaid plans are the best option for first-time customers because price is not as important as with postpaid plans.
DISADVANTAGES OF PREPAID DATA PLAN
1) Prepaid services usually offer fewer features than postpaid plans. This means you will need to spend more money if you want popular features like mobile hotspot, international calling or mobile data rollover.
2) There are no upgrade options with prepaid plans compared to postpaid services, which offer new device subsidies and upgrades every two years.
3) Prepaid service providers usually offer slower network speeds than postpaid service providers like AT&T, Verizon, etc… for the same plan price point. This is because prepaid service providers do not have access to the same airwaves spectrum as postpaid service providers do.
4) Prepaid services usually offer a limited selection of devices than postpaid services, which often carry all major US device brands and most popular models.
5) Customers with a poor credit history may be left out of prepaid services availability because most prepaid data plans require a credit check before signing up.
6) Prepaid service providers also have strict rules about switching from one provider to another, so it can be very difficult for customers to move their mobile numbers between providers.
Bottom line
Prepaid data plan providers offer cheaper price per gigabyte compared to postpaid plans, but have limited access to network spectrum and customer choices.