What is Prepaid Phone Service?
Prepaid phone service is a payment option where customers pay for telephone services in advance. This is in contrast to telephone services where a contract is required and services are paid for on a recurring basis. While most forms of prepaid phone service are associated with cell phone usage, there are also landline services that are prepaid as well. Unlike a standard service plan, prepaid phone service does not require signing any type of contract or committing to a minimum amount of usage in order to secure a good per minute price for telephony services. For example, a typical prepaid mobile phone service will require the subscriber to purchase a phone outright, then incrementally purchase blocks of call minutes for use. When and as needed, the subscriber purchases additional minutes. There are no monthly service charges and no additional fees to pay. While cellular services are the most common form of prepaid phone service, there is a small and growing market for prepaid wired ser
Prepaid phone service is a payment option where customers pay for telephone services in advance. This is in contrast to telephone services where a contract is required and services are paid for on a recurring basis. While most forms of prepaid phone service are associated with cell phone usage, there are also landline services that are prepaid as well. Unlike a standard service plan, prepaid phone service does not require signing any type of contract or committing to a minimum amount of usage in order to secure a good per minute price for telephony services. For example, a typical prepaid mobile phone service will require the subscriber to purchase a phone outright, then incrementally purchase blocks of call minutes for use. When and as needed, the subscriber purchases additional minutes. There are no monthly service charges and no additional fees to pay.
