Is a prepaid smartphone a good deal?

Oct 28th 2010 at 2:20PM

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Buying a cell phone plan shouldn't be like doing calculus, no matter how simple my fellow WalletPop writer Josh Smith makes it in his handy charts comparing cell phone data plans. As his analysis points out, if you're looking for an Android-powered smartphone with unlimited data, Virgin Mobile has the best deals. I bought the Android-powered Samsung Intercept through Virgin a week ago, and now I can't imagine how I lived without it for so long.
The upfront cost of $250 is a lot, but once you do the math, it's apparent that it's a good deal. The phone essentially pays for itself in nine months when you factor in the minimum $30 monthly savings that other companies charge for unlimited data use.
Virgin Mobile's Beyond Talk plan offers unlimited data and Internet, text and e-mail starting at $25 a month, as Smith pointed out a few weeks ago on WalletPop. The $25 includes 300 anytime minutes to talk. Other plans are $40 for 1,200 minutes and $60 for unlimited minutes.
I bought the $40 plan this month, but next month I may switch to the $25 plan if I'm not using the phone to call as much as I thought I would. As someone who doesn't like being surprised by a monthly phone bill with taxes and fees added on, I've had a prepaid phone for a few years. Upgrading to a smartphone, however, has so far allowed me to be more productive when I'm away from my computer.

For example, my computer broke this week, so while it was in the shop I was still able to call and e-mail sources for freelance stories I'm working on. Even when I get my computer back, I'll use the Intercept often for e-mail when I'm away from the computer -- which is often during the afternoon when my daughter gets out of school. I can still do some work -- such as e-mailing to set up interview appointments -- without having to get to a computer.
Most smartphones are subsidized by the carrier, which is why the Intercept costs $250 upfront. That was a steep fee, but worth it in the long run, along with not having to pay any early cancellation fees and being on a month-to-month contract.
As for the phone, it has a lot to offer: a 3G network, takes photos and video, connects to Wi-Fi, can download and run Android apps, has a physical keyboard, expandable memory and a free app from Google Maps that gives voice turn-by-turn directions. I used the directions feature the other night and had no problem finding an address.
A downside so far is that the battery drains fast, which may be my fault for having too many apps loaded and alerts running. Using the phone for about four hours drains the battery enough that it needs to be recharged, and if it's not plugged in overnight it can lose a charge within a few hours the next morning after a few calls. I may soon be buying a car charger.
Also, to find out how many calling minutes I have left, I have to go to Virgin Mobile's website and log in. This is easy enough to do from a computer, but getting there from the smartphone is a hassle. I'd prefer seeing the used minutes listed somewhere on the phone, although that function may be hidden somewhere and I just haven't found it yet.
At least I'm not looking at paying $30 a month for a data plan.
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Virgin Mobile's Prepaid Broadband: So Popular It's Raising Prices

Feb 15th 2011 at 1:20PM

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Unlimited no longer means no limits at Virgin Mobile USA. The company announced today that due to the popularity of its Broadband2Go wireless Internet plan for its 3G MiFi hot spots and wireless modems, it's increasing the monthly fee and restricting speeds.
The $40 unlimited data plan was "overwhelmingly popular," according to the company's press release, and is being increased by $10. Citing an overloaded Internet, Virgin Mobile scaled back the plan to 5GB of data in February, but today cut that to 2.5GB a month. After reaching that amount, customers "may experience slower download speeds until the end of that monthly cycle," the company said.
Virgin Mobile unleashed the $40 unlimited plan last summer, and it became so popular that its $150 personal modems, called MiFi, were hard to find in stores. In July 2009 it started selling a mobile USB stick for $150, which I tried out for free at the time, and the price has since dropped to $80.
The company announced the change today on its Facebook page, which caught users by surprise and angered some. One called the 25% price increase a bait and switch.

Customers who subscribed before today will still be able to keep 5GB, although if they move off the $40 plan they won't be able to return to it. New customers of the $50 plan will see slower speeds after using half of their 5GB. It was unclear from Virgin Mobile's press release if existing customers will also experience slower download speeds when they get to 2.5GB, and company spokeswoman Corinne Nosal would only say that existing customers will continue on the plan until further notice and will have a threshold of 5GB.
I have smartphone through Virgin Mobile, which through its Beyond Talk Plan offers unlimited text, email, data and Internet. I asked Nosal if those unlimited plans would soon become as limited as its broadband program. She assured me that the current changes only apply to its Broadband2Go service, but anything is possible.
"We do, however, always reserve the right to implement network management practices to ensure optimal performances for all subscribers as necessary," she wrote in an e-mail.
Popularity can be a good thing, but not when it leads to a price increase.
Aaron Crowe is a freelance journalist in the San Francisco Bay Area.
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Prepaid wireless Internet a great idea, but can you afford it?

Fans of prepaid cellphones will love Virgin Mobile's Broadband2Go, a USB device that provides pay-as-you go wireless Internet service without an annual contract.(wireless internet service,internet service providers,internet service,wireless service providers,verizon wireless internet,verizon internet,broadband internet providers,wireless broadband providers,broadband internet,broadband wireless)

What they may not love so much is the price, or at least the initial $150 to buy it.
On the plus side, Virgin Mobile's prices to buy megabytes to browse the Web, watch videos and read e-mails are fair enough if you don't mind paying $10 for about five hours of Web browsing or 25 minutes of video.
Virgin Mobile sent me one a few weeks ago to try out, and after about 30 minutes trying to figure out how to connect it with the help of a service representative, it worked well. Coverage was in and out and I got disconnected a few times, but overall I stayed connected long enough to be online for an hour or so at a time.
While there are plenty of mobile broadband devices that heavily subsidize the device with a lengthy contract, the $150 price for Broadband2Go is worth it because it's a one-time cost without a contract attached, said Matt Berberian, director of customer experience at Virgin Mobile, in a telephone interview.
I see Berberian's point, but I doubt if many people who want such a service will pay $150 for something that isn't meant for heavy, long-term use.
The market is "casual broadband" or the "casual traveler," Berberian said, or small business owners. It isn't for anyone who wants to be connected all of the time while on the road.
"We think of the product as a bridge between home Internet and work," he said. "It's not a replacement product."
I'm a big fan of prepaid anything, mostly because I don't like being surprised by surcharges, taxes and such when the bill arrives. I like to know what I'm paying upfront. I've written before about prepaid cellphones and how to compare them and get the best deal. Paying as you go with a phone makes sense if you don't use a lot of minutes; otherwise an unlimited plan is probably best.
Broadband2Go is a great idea because it takes that prepaid idea and brings it to going mobile on the Internet -- no contracts, no credit checks, no activation fees, no monthly or annual commitments, and no overage charges. It's a smart gift for students who don't want to face a monthly bill.
The only limit is that the amount of megabytes -- 250 MB for $20, for example -- must be used within 30 days. The 100 MB plan for $10 expires in 10 days. Any connection time you have left after the expiration date doesn't roll over to the next quantify of Web access you buy -- something that some prepaid phones allow you to do with rollover minutes.
Minutes don't roll over because then Virgin Mobile would have to continue providing customer service during that extended time, explained Berberian, the product lead for Broadband2Go. If the plans were for three months, then the cost of providing customer service for three months would have had to be factored into the price, he said.
To buy Web time, the company sells what it calls "Top-Up cards" in various denominations. A $20 card will buy 250 MB of Internet access, which equals 12 horus of Web browsing, an hour of watching video or 25,000 e-mails.
They're easy enough to buy, but can't be applied on your account until your usage drops to 25 MB. That's because technical limitations don't allow data to be stacked, Berberian said. But be careful: Loading up a $20 card when you have 20 MB left, for example, will get rid of the 20 MB remaining. Only reload when your time is up, or nearly up.
The unit is limited to usage in Sprint coverage areas, so check your Sprint coverage before buying one. And don't expect to watch much video with one of these plugged into your laptop. I watched about 10 minutes of video, and my remaining megabytes quickly dropped in half.
For now they're only sold at Best Buy, which has an exclusive contract to sell them through the end of the year.
If you're going on a weekend trip or vacation and don't want to pay hotel fees to get wireless Internet access, a Broadband2Go device is the way to go -- if you don't mind paying $150 to buy one.
Aaron Crowe is a freelance journalist in the San Francisco Bay Area. Reach him at www.AaronCrowe.net

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Virgin Mobile prepaid mobile broadband beats contract pricing by $20

Aug 25th 2010 at 4:00PM


While some companies have put an end to unlimited mobile data connections on your laptop or other mobile device, Virgin Mobile USA, a prepaid provider, is simplifying its plans and offering unlimited prepaid mobile broadband for $40 a month -- $20 cheaper than what it would cost with a contract on networks like AT&T, Verizon and Sprint.(wireless internet service,internet service providers,internet service,wireless service providers,verizon wireless internet,verizon internet,broadband internet providers,wireless broadband providers,broadband internet,broadband wireless)

The new plans will offer a $10 package for 100MB or 10 days as well as a $40 package that offers unlimited data use for a period of 30 days. This is a departure from its plans that charged $10, $20, $40 or $60 for various amounts of data. The nice thing about this type of prepaid mobile broadband, called Broadband2Go by Virgin Mobile, is that users can purchase a block of service when they need it (and pay nothing when they're not using it.)
The Virgin Mobile USA network is powered by Sprint, which means it has a rather large nationwide network of 3G and 1X data. If you need to check the service in your area there is a coverage map available that shows the data speeds and coverage.
In the press release announcing the plan, Virgin Mobile called attention to self employed and independent workers, who make up approximately 30% of the nation's workforce, who would benefit from a flexible and affordable contract-free data plan. Prepaid data is also perfect for personal users who may find that they need a connection only from time to time. Another bonus of prepaid? You can share a device with a friend and cut down on the initial purchase price.
Assuming you use the Virgin Mobile Broadband2Go service for an entire year, you would still save $240 over the traditional $60-a-month contract price of data, or $480 compared to a two-year contract. If you take into account several months where you don't need a mobile connection, or just need a short $10 package, the savings can grow greatly.
When compared to the prepaid mobile broadband offers from Verizon, Virgin Mobile's cheapest plan is $5 cheaper, and the Unlimited plan is $40 less per month than a 5GB plan on Verizon.
Virgin Mobile USA offers an Ovation MC760 USB modem for $79.99, which can connect one device to the Internet and a MiFi 2200 Mobile Hotspot for $149.99 that can connect up to five devices to the Internet. Those links haven't been updated by Virgin Mobile USA yet with the unlimited plan for $40, but its Facebook page has the new price.
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What will save you money: a pre-paid cellphone plan or a 1- to 2-year contract?

Two months ago, I moved into a new apartment and needed to cut the fat in my spending. Where did I trim first? The landline.(wireless internet service,internet service providers,internet service,wireless service providers,verizon wireless internet,verizon internet,broadband internet providers,wireless broadband providers,broadband internet,broadband wireless)

I know, I know, after discussing the benefits of the landline in a post earlier this year, one would think I'd never do away with it. Maybe I'll reconsider later on, but for now, saving an extra $30 a month is worth it.
Where I am NOT saving, I discovered, is in my cellphone use. My monthly bill skyrocketed as soon as I got rid of the landline since I now use it to conduct interviews and of course, there's the occasional one-hour wait for customer service to handle whatever gadget, credit card or travel-related problem I am having that week. Please note that I have a BlackBerry and so I also pay for Internet use.
My roommate chose a pre-paid phone plan since she's only staying in the U.S. for half a year and when I found out she was paying $50 for her unlimited calling, texting and data monthly plan, I got jealous.
"There must be a catch," I thought. "How could a pre-paid service be cheaper than a monthly, contract-based service? I thought I was getting a deal!"
So when the opportunity arrived, I did some research and discovered some shocking information.
Since my roommate got what sounded to me like a great deal for $50, I used that as my budget. Besides, 50 bucks seemed like an average price for a phone plan. And thus, I compared monthly plans at all major mobile carriers: Sprint Nextel, T-Mobile, Verizon, AT&T. Then, I looked at lesser-known companies: Boost Mobile, Cricket Wireless, MetroPCS, Virgin Mobile USA and PlatinumTel, and compared what they offer for the same amount of money.
Here's what I found:
Individual monthly phone plans on 1- and 2-year contracts
For $50 on a 1- or 2-year contract with major carriers, you get:
Sprint Nextel: The plan includes 450 anytime minutes, ulimited mobile to mobile, unlimited nights and weekends minutes, nationwide long distance, nationwide roaming, unlimited text messaging and unlimited walkie-talkie use (chirp chat). Data not included.
Verizon: If you don't want to talk on the phone, you can opt for the $50 data and e-mail plan for smartphones/BlackBerrys. Otherwise, here's what Verizon offers: nothing for $50, but for $40 you get 450 anytime minutes, unlimited Verizon mobile-to-mobile calling, unlimited nights and weekend minutes, nationwide long distance, nationwide roaming. For $10 more, you may send/receive 50 text messages as each text costs 20 cents.
T-Mobile: You may choose two plans: 1. 600 anytime minutes, unlimited nights and weekends minutes, nationwide long distance, unlimited nationwide calls to any five numbers you choose. No nationwide roaming, no data, no text-messaging included. 2. 1000 anytime minutes, unlimited nights and weekends minutes, nationwide long distance, nationwide roaming. Data and text-messaging not included.
AT&T: There's nothing for $50, but for $40, you could get 450 anytime minutes, 5000 nights and weekends minutes, unlimited mobile-to-mobile calling, nationwide long distance and nationwide roaming. For $10 more, you may add 1000 text messages to your plan. You do get rollover minutes; therefore, if you don't use all the minutes in one month, they get added on to the next month. Data not included.
Benefits of individual monthly phone plans on 1- and 2-year contracts:
1. You don't have to worry about adding money to your plan as your minutes and features never expire (unless you don't pay your phone bill, of course). Even if you have limited daytime minutes or do not have text-messaging or data added to the plan, you can always use the feature (if your phone permits), but will just have to pay additional fees.
2. Customers can score a free mobile phone or receive a large discount on a phone when purchasing a individual plan with a 1- or 2-year contract.
3. Often, when you find a better service option from a competitor (for the same amount of money), you may call your service provider and request additional perks or threaten to leave them for the said competitor. This only works, however, when your contract has ended. Since companies want to retain customers, they usually add features such as text-messaging, more daytime minutes, etc.
Caveats of individual phone plans with 1- and 2-year contracts:
1. If you wish to cease using their service and choose to break the contract with the aforementioned companies, you will incur a fee. With Sprint, it will cost $200, progressively reducing to $50 depending on how many months are left in the contract; with T-Mobile, it will cost $50 to $200, also depending on how many months remain on the contract; with AT&T, it will cost $175 (minus $5 for every month you honored the contract); and with Verizon, it will cost $175 (minus $5 for every month you honored the contract).
2. You're often paying more money for fewer options. (Read options offered by pre-paid service providers.)
Pre-paid monthly phone plans with no contract
For $50 on a pre-paid monthly service from smaller carriers, you get:
Virgin Mobile USA: Unlimited voice calling, unlimited nationwide long distance, unlimited nationwide roaming. No data or texting included. (Cool thing to note about the Virgin Mobile plans: They offer "Pink Slip Protection." It is a program that will waive up to three months of monthly charges if a Virgin Mobile customer becomes unemployed. However, this only works for those individuals who have been Virgin Mobile customers for at least two months on a monthly plan and then become unemployed. They have to be eligible for unemployment benefits within the next 12 months for the program to activate.)
Boost Mobile: Unlimited voice calling, unlimited nationwide long distance, unlimited data usage, unlimited text-messaging and unlimited walkie-talkie use (chirp chat).
MetroPCS: For $50, you can get: a $45, no-contract, monthly prepaid plan that includes unlimited voice calling, unlimited nationwide long distance, unlimited text-messaging, unlimited data. For $5 more, you get unlimited international calling, or you can choose to spend $5 for unlimited call forwarding. Nationwide roaming costs extra.
Cricket Wireless: Unlimited voice calling, unlimited nationwide long distance, unlimited text-messaging. No data and no nationwide roaming.
PlatinumTel: Unlimited voice calling, unlimited nationwide long distance, unlimited texting, nationwide roaming and 100 megabytes of high-speed 3G data.
Benefits of pre-paid monthly phone plans with no contract
1. With a pre-paid option, you are not bound by a monthly contract, and thus, will not incur any fees if you choose to stop using the service provider.
2. There are no credit checks. Those individuals with poor credit don't have to worry about not receiving mobile service as companies offering pre-paid services don't really care whether their customers are defaulting on payments or going into bankruptcy because...well, they're paying in advance.
Caveats of pre-paid monthly phone plans with no contract
1. Your minutes, texts, data use have an expiration date and if you forget to add more money to the service(s), you might find yourself stuck with no way to communicate with the outside world, and that's a problem you do not want to encounter in emergency situations.
2. You have to buy the phone from the pre-paid service provider (and many of them are quite outdated-looking, to be honest). Also, they don't offer BlackBerrys--and for BlackBerry users like me, that's a concern. There are, of course, ways around that, but those options are illegal, and we're not going to mention them here.
And the winner is...
Pre-paid phone service from smaller carriers like Boost Mobile and MetroPCS. There are no contracts, no credit checks and many recession-friendly options. Boost Mobile service reviews were much better than those for MetroPCS. Of course, since Boost Mobile and Virgin Mobile are divisions of Sprint Nextel and run on the nationwide Sprint Network while MetroPCS coverage is very limited. This information is not advertised, however.
Hmm, sneaky, Sprint Nextel, very sneaky.
Imagine my anger when I realized that I was paying $40 more for a monthly contract plan to the same pocket that my roommate pays $50! I pay $89.99 for the "Everything Data" plan for my BlackBerry and I had to enter a 2-year contract with Sprint in order to receive the plan and get a $200 discount on my $549 BlackBerry.
My plan includes 900 daytime minutes, unlimited nights (after 7 p.m.) and weekends, unlimited data, unlimited nationwide long distance, unlimited walkie-talkie use (even though my BlackBerry doesn't have that function), nationwide roaming and unlimited texting.
About two weeks ago, Sprint added a feature to my plan, which allows me (and others) to make unlimited calls to any mobile service user in the U.S. Since I spend approximately 1,800 daytime minutes on interviews,etc., and since Sprint charges 40 cents per each additional minute used beyond plan's allowance, my phone bill ALWAYS exceeds $90 and I pay $200 and up per month.
I can't do anything to change that unless I break the contract with Sprint, and even though I will save money in the long run, I don't want to spend the money on a new phone and pay a $150 fee for breaking the contract. Well, not yet, at least.
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