[QUOTE=nevermore]
I’ve shopped around, and I don’t use my phone much either, but it seems to me that pay-as-you-go doesn’t save most people any money. For heavy users, it’s more expensive, and for light users, it’s usually easily as expensive, so the only benefit would be not being bound to a contract.
Here’s an example:
Say a given prepaid plan costs you 10 cents a minute (that’s the lowest price I’ve seen). Say you use about 250 minutes a month. So, 250 minutes should cost you $25, right? Well, except they charge a fee for the privilege of getting 10 cents a minute-- at Virgin Mobile it’s $6.99/month; at AT&T it’s $1 every day you use the phone. Then you add in texting (10 cents each plus a fee, or $5 for like 200), or internet connection (who knows how much), or what have you, and you’re back up to your $45.
I’m sure for some people you come out better. If you honestly don’t use even 100 minutes a month, yeah, pay as you go might work for you. I use about 300, so it wouldn’t save me any money and I’d have to switch phones. shrug Best thing you can do is go check out the various providers’ websites and do the math.
[/QUOTE]
I would agree with Nevermore’s analysis. I use a pay-as-you-go Cingular/ATT phone and it works out for me because I don’t use it every day. When I do use it, it is usually for short calls - not more than 5 or 10 minutes. The key is the $1.00 per day for the “first” use.
So if you don’t make long calls, but tend to use it every day, a pay-as-you-go plan may not work well for you. I think Cingular also has a flat .25/min. with no $1.00/day plan, and that may be another option. And you can switch between plans at any time (and also switch to a monthly plan, of course, as well).
The good thing with my plan is if I call other Cingular users, there is no .10/min. fee. So I can talk all day to those people (still have the $1.00/day, tho).
There are other, cheaper, pre-paid plans, but then you have to consider the coverage. And how much you travel, and whether those places are likely to have coverage.