The Phone You're Paying For But Not Getting
Prepaid vs Postpaid - Oversimplification, but correct
The article does over simplify the phone subsidy argument, but it certainly is more complicated than slapping a $20.00 value on a phone subsidy. Quite frankly, I think its closer to $30.00.
While comparing prepaid prices to post paid prices seems like a good standard, there is a bigger picture. Prepaid simply does not have the same overhead and risk postpaid plans have. They typically do not have expensive retail stores to maintain, call centers full of upper tier tech support and finance. They also do not have to endure the risk of customers abandoning accounts. Also, prepaid carriers do not have to worry about roaming.
On the flip side, post paid plans get the luxury of overages, late charges, extra charges and features, and q...
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While comparing prepaid prices to post paid prices seems like a good standard, there is a bigger picture. Prepaid simply does not have the same overhead and risk postpaid plans have. They typically do not have expensive retail stores to maintain, call centers full of upper tier tech support and finance. They also do not have to endure the risk of customers abandoning accounts. Also, prepaid carriers do not have to worry about roaming.
On the flip side, post paid plans get the luxury of overages, late charges, extra charges and features, and q...
(continues)
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Very well put. I still use Virgin Mobile as my service provider. Although the phone selection isn't as good and the technology is slower at advancing, you get the trade-off of dirt cheap service.
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