Prepaid phone, no monthly fee, minutes don't expire: any such thing in the US?

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(Pete Cresswell) - 20 Jul 2004 01:07 GMT

Seems like the business model should work.

To wit:

- The provider gets the time value of money as long as the user has unused
prepaid minutes....the longer the time, the more the return

- Once the user signs up (probably for a one-time fee that covers all account
creation/hardware costs...) there are no incremental/time-related costs,
assuming that prepaid users are not on the normal billing cycle

Seems like all that's needed is an auto-notify/message so the user can see how
many mintutes are left by looking at the phone's display plus some conduit for
the user to funnel money into the prepaid account.

From secondhand information I've heard, it *seems* like there's something like
this in China.

Anybody heard of such a thing in the USA?

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PeteCresswell

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Bill Radio - 20 Jul 2004 04:43 GMT

Pete,
I have a pre-paid account with T-Mobile that lasts for 1 year. I had to add
$25 to my initial account to get the 1 year. I also have an AT&T account
through JusTalk that is good for 6 months and those minutes cost me $9.
Minutes left can be checked on the phone, but won't alert me automatically.
The minutes won't expire if I re-up before time is up, and I think 6 or 12
months is reasonable.

Bill Radio
Click for Western U.S. Wireless Reviews at:
http://www.mountainwireless.com

> Seems like the business model should work.
>
[quoted text clipped - 15 lines]
>
> Anybody heard of such a thing in the USA?

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something - 20 Jul 2004 13:08 GMT

>> - The provider gets the time value of money as long as the user has unused
>> prepaid minutes....the longer the time, the more the return
[quoted text clipped - 3 lines]
>> creation/hardware costs...) there are no incremental/time-related costs,
>> assuming that prepaid users are not on the normal billing cycle

There are incremental costs. There is a cost to keep the line
connected to the regular phone service. I'm amazed at how low that
cost must be to make prepaid profitable.

As for JusTalk, you get a free 866 number with your phone number so
anyone can call you toll free. I plan on using mine for a family
hotline where people can call in and hear about upcoming
events/birthdays, etc. Everyone can call for free, it doesn't come
off of my minutes (I don't take incoming calls with it anyway), and it
only costs $9 ever six months.

Shawn

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AL - 20 Jul 2004 18:25 GMT

Shawn
You will just ruin a good thing for many people. It is fraud and is not the
way it was intended to be used. So when they find out the cost is more than
any benefit to them and the customer, they will raise the price and change
the terms. All because you were too cheap and not honest enough to use it in
a responsible way and they way it was intended to be used.

AL

> As for JusTalk, you get a free 866 number with your phone number so
> anyone can call you toll free. I plan on using mine for a family
[quoted text clipped - 4 lines]
>
> Shawn

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Joseph - 26 Jul 2004 15:29 GMT

>You will just ruin a good thing for many people. It is fraud and is not the
>way it was intended to be used. So when they find out the cost is more than
>any benefit to them and the customer, they will raise the price and change
>the terms. All because you were too cheap and not honest enough to use it in
>a responsible way and they way it was intended to be used.

And just who are you to determine what is "right and responsible."
Since they do not make any such limitation on how you use your service
how are they "taking advantage" of the service. Telco services are
basically just selling air. Do you think it costs a telco more money
to have equipment just lay idle and just take calls rather than occupy
voice circuits? Be real!
- - - - - - - - - - - - - - - - - - - - - - - - - -
remove NONO from .NONOcom to reply

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PeteCresswell - 20 Jul 2004 22:23 GMT

> There are incremental costs. There is a cost to keep the line
> connected to the regular phone service. I'm amazed at how low that
> cost must be to make prepaid profitable.

What is "the line"?

"Regular phone service"?

I don't know much of anything about this stuff and had assumed that
the phone was just an RF device that logged into a wireless
network...and from there on it was just a matter of database tables
and computer cycles...

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Todd Allcock - 23 Jul 2004 06:23 GMT

> > There are incremental costs. There is a cost to keep the line
> > connected to the regular phone service. I'm amazed at how low that
> > cost must be to make prepaid profitable.
>
> What is "the line"?

Wireless phones fhave phone numbers, and carriers are responsible for
certain taxes and fees, like the Universal Servce Fund, which, IIRC,
runs about 80-cents/month. That alone means your pre-paid phone costs
a carrier about $10/year.

> "Regular phone service"?

Wireline phones. Wireless carriers pay an interconnect fee to connect
you a regular (non-wireless) phone. This is a per-minute cost
however, and really shouldn't factor in here.

> I don't know much of anything about this stuff and had assumed that
> the phone was just an RF device that logged into a wireless
> network...and from there on it was just a matter of database tables
> and computer cycles...

Sort of, except for the federal and state taxes! ;-)

Besides, given the shortage of telephone numbers available, it seems
reasonable that carriers would want some small amount of ongoing
revenue from such a precious resource. I have three prepaid phones
and have only used six minutes of airtime between them this calendar
year.

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Ben - 25 Jul 2004 06:18 GMT

What is the conclution? Who is offering the best prepaid phone service?

> > > There are incremental costs. There is a cost to keep the line
> > > connected to the regular phone service. I'm amazed at how low that
[quoted text clipped - 25 lines]
> and have only used six minutes of airtime between them this calendar
> year.

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Todd Allcock - 26 Jul 2004 05:12 GMT

> What is the conclution? Who is offering the best prepaid phone service?

Depends on your situation. If you talk a lot, it could be Virgin
Mobile- 25-cents/min the first 10 min. each day, 10-cents/min after,
Verizon- 25-cents per call plus 10-cents/min, Cingular's 10-cent plan
($1/day +10-cents/min), or T-Mobile ($100 card is 15-cents/min or
10-cents per min after you've spent $250 on that account.)

If you talk very little and want the cheapest monthly rate, T-Mobile
is running a special- add $25 to any prepaid account and your balance
is good for a year. AT&T Free-to-Go sells $10 refill cards good for
three months ($3.33/month), and Justalk, an AT&T reseller, sells $10
cards good for 6-months ($1.67/month.)

In addition to my contract phones, I use a T-Mo prepaid with a JusTalk
for backup in areas T-Mo doesn't work.

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