Prepaid Wireless Review

Comparing prepaid and monthly wireless plans

Prepaid wireless isn't just for the credit-challenged anymore, reviews say. Nicer phones and cheaper rates are luring more customers out of costly cell phone contracts. "Any stigma attached to the [prepaid] phones -- they are a common prop in any show or movie about gangs and spies -- is falling away as prices drop and the quality of the phones rises," reports Jenna Wortham of The New York Times.

Unlike traditional monthly cell phone plans (covered in our report on cell phone plans), prepaid wireless plans require no commitment and no credit check. Traditionally the only option for those with damaged credit, prepaid cell phones are also a good way to control cellular costs for teenagers, those on a fixed income or people who want a cell phone only for emergencies.

These days, prepaid wireless is a good money-saving option for anybody, according to The New York Times, MSNBC.com and other sources. You can now get prepaid plans that are identical to all-inclusive contract plans, except for two things: They cost less, and you don't have to sign a contract (or risk a penalty of $200 or more if you cancel early).

Large surveys conducted by ConsumerReports.org, J.D. Power and Associates and PCMag.com form the backbone of our report. These reviews poll thousands of households on overall satisfaction with their wireless carriers and are the best way to gauge overall network coverage, call quality and customer service. In addition, we found thorough prepaid wireless buyer's guides at PrepaidReviews.com, CNET and About.com. The New York Times and MSNBC.com review some of the newest prepaid plans on the market.

The two biggest wireless providers in the U.S., Verizon Wireless and AT&T, get some of the worst reviews for their prepaid plans. Verizon Wireless Prepaid (*Est. 25 cents per min. and up) is reliable, with good customer service, according to J.D. Power and Associates -- but AT&T's GoPhone prepaid service (*Est. 25 cents per min. and up) is only average in those categories. Both rate below average overall at J.D. Power, largely because they're pricey. PCMag.com readers give AT&T the worst scores for cost, with Verizon close behind.

Bob Tedeschi at The New York Times finds the major carriers' prepaid plans "confusing." He adds: "Verizon's customers can make unlimited calls to one another, as long as they pay a $1 fee every day they use the service. Paying $2 for every day you use the service allows you to make unlimited calls free, except on weekends, when it costs an additional 5 cents a minute, and your minutes expire at the end of the month if you don't use them. You get the idea." Tedeschi instead recommends the simpler Boost Mobile Monthly Unlimited (*Est. $50 per month) from Sprint, which other sources agree is one of the best prepaid wireless plans you can buy.