Originally published June 28 2005
Prepaid phones find niche in mobile communications market
by Mike Adams, the Health Ranger, NaturalNews Editor
Prepaid cellular phones have gone from being a stigma to gaining status as one of today's most popular ways to join the digital age, the Argus Leader reports, as pay-as-you-go plans and phones have improved looks, features and accessories, all at an attractive price.
Today's phones sport color displays and text messaging capabilities, with a sleek look previously reserved for those with deep pockets.
"In the past there was a label that went with carrying a prepaid phone," said John Twier, a salesman at Best Buy in Sioux Falls.
The product improvements have attracted creditless teens and contract-hesitant adults in staggering numbers.
Prepaid phone service is growing 25 to 30 percent a year, far outpacing the wireless industry's overall 5 percent growth rate.
"The prepaid experience and handsets now are great, it's no different from other phones or plans," said Karen Smith, a spokeswoman for Verizon Wireless.
Customers can add minutes to their phones online or by purchasing a card coded with a specific number of minutes.
At 10 to 40 cents a minute for talk time in Sioux Falls, the average prepaid phone user spends about $30 a month, rather than the $55 a month paid by customers with a contract.
"We want people to see using prepaid phones more as choosing a different payment option, not a lesser option," Smith said.
Twier said about half of the new cell customers he helps at Best Buy pick a phone that doesn't require a service plan.
Historically, prepaid service hasn't been as popular in the United States as providers sought customers with good credit who would sign long-term contracts.
New pricing, features Three or four years ago, service cost about 60 cents a minute.
At the Verizon store, $130 buys a mid-level Samsung loaded with $50 in talk time.
Roberta Colon of Sioux Center, Iowa, makes frequent trips to shop and visit family in Sioux Falls.
As prices drop, prepaid phones have become an affordable backup for people with existing service contracts.
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