Picking the Right Prepaid Cell Phones

Picking out a prepaid cell phone plan is a lot like slicing your way through a tangled jungle with a machete.  Many consumer advocates accuse the big wireless players (such as Verizon, Cingular, and T-Mobile) of intentionally obfuscating their plans to cash in on the ignorance of customers.  That said, the reality is that all companies offer tiered deals, and it is therefore critical to analyze your calling behavior prior to signing up for a prepaid package.

At the low end, you will have to pay only 10 cents per minute.  At the high end, you can pay 60 cents per minute or more, depending on the terms of your contract.  If you purchase minutes in bulk (over 1,000 at a time), chances are that you can get your rate down to near 10 cents per minute. The T-Mobile Sidekick II plan offers a fair amount of features. 

That said, companies may charge you activation fees, non-use fees, monthly fees, taxes, and other surcharges that can bump up the total on your bill, in addition to the cost of the cell phone itself.  Conversely, you can knock your costs down without changing your calling habits.  If you speak primarily with your spouse, for instance, the two of you can get on-board a plan with one carrier and benefit from unlimited cell-to-cell calling.

Finally, it is critical to consider smaller prepaid cell phone operators, commonly known as MVNOs.  These include Liberty Wireless and Boost Mobile.  These companies purchase enormous quantities of cell phone minutes from their larger corporate brothers and then resell those according to new terms at discount.