Pay As You Go Cell Phone Service
There are many types of cell phone deals available on the market. At the basic level they can be divided into two types?pre-paid cell phone deals and post-paid ones. Of the two, pre-paid cell phone deals are the more popular for a variety of reasons.
The inherent disadvantage of a post-paid connection is that it requires one to sign a year long contract that also carries with it a lot of fees and charges. It is for this reason that post-paid connections are not very popular with a lot of people.
On the other hand, with pre-paid cell phone deals, one does not need a credit check. There is also no deposit that is required to be paid since it is pre-paid phone usage. There are also no monthly rental fees or service fees. Also no termination fee is charged if one wants to change the provider or not use a cell phone at all. The most important advantage of a pre-paid cell phone, however, is that one is always in control of the amount one spends on calls; this is not possible on a post-paid connection. Pre-paid clearly means that one can only use the phone according to the amount that has been paid.
However, one also needs to remember that in order to meet their expenditure, cell phone companies recover this amount by charging more on calls and short message service. Also, one can run out of cash at a very crucial time, and there might not be a facility to recharge the amount anywhere nearby. There are often time periods on the credit limit, which means that if the amount is not used within that specified time, it expires and results in a loss for the person.
Hence, for an overall analysis one needs to remember that prepaid connections are good for conditions where one does not have to make too many calls and the phone is for the primary reason of receiving calls rather than making them.
According to Eagle, local incumbent Safaricom had started a minute-sharing service for its prepaid cell phone plans a few years back. The idea was to enable users to send minutes to family members in rural areas.
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Author: Eric Morris
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