Become a MacRumors Supporter for $50/year with no ads, ability to filter front page stories, and private forums.
Wrong.

With these plans, you are paying for upcoming usage, not what you have done with your handset over the past month. If you don't refill before the service deadline, your phone goes dead. You never get a bill. Luckily, the phone company will pester you several times before the expiration date.

That's why there's no credit check with these prepaid plans. The mobile operators get their money before they activate your phone.

Moreover, neither party signs a legal document which is what a court of law would look for when the word "contract" is brought up.

In most cases, you can buy the prepaid plan service cards ahead of time and not use them. You can go to Walmart and buy several Straight Talk service cards. You have paid in advance and you aren't required to use the service right away. Straight Talk will even give you a few dollars off if you pay for three months of service in advance.

For a company like Straight Talk, you can also set up auto-load via a credit card. They will send you a text a few days before your plan expires telling you they're about to charge. If your card is declined for whatever reason, they will apparently pester you to update your billing information or give you a chance to enter a prepaid card activation code before they cut you off.

With many of the other cellular companies, you can buy discount prepaid cards online (like getting $100 of AT&T GoPhone credit for $95 at CallingMart.com). That's actually the best way to use the iTunes Store as well. Occasionally there are bargains on iTunes Cards from online retailers, like a $50 iTunes Card for $40. That's a 20% cash savings.

If something expires after one month, it means there is a contract that essentially runs for one month. The way the term prepaid was coined in the mobile phone industry was that you paid a certain amount and then could draw from that amount until you had spend it all. There was no monthly fee, no expiration (or it was measured in years). It was like buying a voucher and how and when you spent it was up to you. It had appeal not only because it did not require credit checks but also because you did not spent a single cent until you actually used it, ie, there was no recurring fee.

This offer here is a regular contract which just automatically expires after one month much like the data contracts for the iPad.

Have a look what Wikipedia has to say about 'prepaid mobile phone':
http://en.wikipedia.org/wiki/Prepaid_mobile_phone
 
Last edited:
That is not how the mobile industry markets these plans. They are advertised by the carriers themselves as "no contract."
And what they mean is: no contract beyond one month (which is the great appeal compared to the usual two-year contracts.
 
Obviously this can be gamed by people going to Cricket and get an unlocked 4S for $499 and then switch to another carrier a month later.

If Cricket does offer unlocked models then they will probably charge more than $499 for them. The $499 price is almost certainly for a locked phone.
 
And what they mean is: no contract beyond one month (which is the great appeal compared to the usual two-year contracts.
No, it is not a one-month contract.

Contracts must be signed by adults, people of the age of majority. A minor can buy a prepaid phone and buy a prepaid service card with cash.

Minors cannot sign legally binding contracts. Minors can't sign up for their own credit cards, buy real estate, motor vehicles, etc.

Without a doubt, a prepaid monthly plan has legal terms and conditions, stipulations on usage, service levels based on what the buyer purchased, etc., but it is not a contract.
 
As a T-Mobile user in a contract, this kinda hurts. With T-Mobile refarming to 1900MhZ to offer 3G compatibility to iPhone and over a million unlocked iPhone users on there network, I'm very surprised at the lack of an official T-Mobile iPhone.

Seriously, did the CEO of T-Mobile kick St.Jobs' puppy as a kid? Did a T-Mobile user make fun of his turtleneck sweater? After Bluegrass Wireless and Alaska Telecom, now even freaking Cricket gets the iPhone? Just not T-Mobile. Lame, :apple:.

----------

Doesn't prepaid mean that you pay whenever you run out of credit? As opposed to a fixed monthly amount? Then what's the difference between this and a contract??

No two year commitment.
 
Seriously, did the CEO of T-Mobile kick St.Jobs' puppy as a kid? Did a T-Mobile user make fun of his turtleneck sweater? After Bluegrass Wireless and Alaska Telecom, now even freaking Cricket gets the iPhone? Just not T-Mobile. Lame, :apple:

T-Mobile USA resigned themselves to this fate the day they picked the frequencies for their 3G network. Just their bad luck.

FWIW, T-Mobile sells and supports the iPhone in Europe where their 3G network frequencies are compatible.
 
Originally Posted by baryon:
Doesn't prepaid mean that you pay whenever you run out of credit? As opposed to a fixed monthly amount? Then what's the difference between this and a contract??

No two year commitment.

Prepaid has for the last decade meant that you prepay a fixed amount than you can use until you have used up that amount. There was no fixed monthly fee, you only payed for exactly the services you consumed.

In recent years, particularly with the emergence of data-only services, another type of 'service' has appeared which is modelled after conventional contracts where you pay a monthly fee for a certain allowance which expires not when you used up a certain amount of data or minutes but when a time period is over. They in effect not much different from conventional contracts which can be cancelled at any moment. For some reason, some people insist on lumping them with the conventional prepaid services despite them being clearly different. This, as far as I can see, happens mainly in the U.S., where prepaid (partly due to the non-interoperability between different providers) has been noticeably less common, probably because it is easier to sum anything that is different from the conventional model under that other label prepaid.

Just have a look at Wikipedia's description of what prepaid mobile phones are:
http://en.wikipedia.org/wiki/Prepaid_mobile_phone
 
T-Mobile USA resigned themselves to this fate the day they picked the frequencies for their 3G network. Just their bad luck.

Yeah. It sure is a shame that it is absolutely impossible for any phone to be made in different versions with different radio hardware, making it impossible for any vendor ever to make a phone work on both t-mobile and AT&T.

... Which is to say: The frequencies are not a significant barrier, because that problem is totally solved. If Apple wanted to sell a t-mobile phone, they would. (And I'd get two or three and phase out my AT&T contracts.)
 
Yeah. It sure is a shame that it is absolutely impossible for any phone to be made in different versions with different radio hardware, making it impossible for any vendor ever to make a phone work on both t-mobile and AT&T.

... Which is to say: The frequencies are not a significant barrier, because that problem is totally solved. If Apple wanted to sell a t-mobile phone, they would. (And I'd get two or three and phase out my AT&T contracts.)

T-Mobile USA deployed a network that would only work with phones designed for them. It was a bold move, an attempt at creating vendor lock-in for consumers. You wanted a T-Mobile phone USA, you bought an approved phone custom-built for their network. And Apple was never going to make a T-Mobile USA-specific iPhone.

There is a limit to the number of radios Apple is willing to build into the phones. Look how long it took to get a CDMA variant. And I'll guarantee that any additional hardware (chips, antennas) will be LTE-focused, not on some marginalized 3G radio band used in one country by one company with a distinct lack of foresight.

T-Mobile made this mess for themselves. It's hardly fair to expect Apple to clean it up for them.

At least this will make a good case study for future business school students...
 
How do they subsidize it with no contractual obligation, odd but cool.

The majority of their customer base are people who cannot get a contract through a traditional carrier. While some people use Cricket for the savings, most are with them because of credit issues.

You would be amazed at what people who can't afford anything will pay for phones and gadgets.

Cricket also is one of those companies, that even if you screw them, you can regain service in 30 days.

If you're dropping $399 on a handset, and you have NO CREDIT, you're going to stay with them.
 
Has anyone had expereince in cancelling at&t? Do they bill you the ETF or do you have to have to pay them in advance.

I really want to cancel at&t and i want to move to straight talk. I dont talk on the phone that much and i maybe only use 1-2gb a month in data.
 
You do not need to unlock an AT&T handset to work with the Straight Talk SIM card. I'm using a factory unlocked iPhone 4S on Straight Talk, but it's not a requirement. However, if I go overseas, I can pop in a local carrier's SIM without issue.

Straight Talk is an MVNO that purchases wholesale access from AT&T, T-Mobile USA, and Sprint. They sell AT&T compatible SIMs and T-Mobile compatible SIMs. In addition, they sell a number of handsets run on the AT&T and Sprint networks if you don't want to bring your own device.

Here's my cost analysis that I just did on another site:

Straight Talk "Bring Your Own Phone" SIM card, $45/month no-contract. Unlimited talk, unlimited text, and "unlimited" data (which anecdotally has a soft cap around 2GB followed by an allegedly "you're a data hog" message). Just buy the unlocked retail iPhone 4S at Apple.com for $649 plus the one-time $15 for the SIM card. Your phone will be connecting to AT&T's cellular towers. If you're in an area with HSPA+, you'll have the faster connection.


So, switching to Straight Talk, what do you lose in the bargain? Does MMS still work? Visual Voicemail? Etc.?
 
I think it is funny to read the arguments about the social class division between "prepaid" carriers and the big four.

For me, it is obviously a better deal to buy an unlocked phone and then go Straight Talk or RedPocket Mobile - or Cricket with the iPhone that this thread is about.

I don't see any "luxury" or "status" in paying $100 and then get a branded device (iPhone is luckily saved from that though) with a nice carrier logotype and bloatware installed. In Europe, it is rather "finer" to have an unlocked, standard device than those carrier branded ones.

It is a better deal to get a cheaper monthly plan with an unlocked phone that can be replaced whenever a new model comes out. The price calculations that has been provided in the thread is very telling. It doesn't matter what "clientele" that are opting for Cricket, the fact remains: the big four charges a lot and gives a crippled device in return. Either locked or branded or both. Personally, I am not into iPhones since I prefer the iPad when it comes to iOS and Android and other platforms when it comes to smartphones and just seeing what the carriers does with the devices (changing design, buttons, CPUs, radios, adding bloatware, locking down etc) makes it silly to even try to argue that having an account with AT&T or Verizon is some kind of "status" unlike the "poor prepaid customers".

There is NO STATUS or LUXURY with a BRANDED device. A perfectly standard, unlocked smartphone on Straight Talk or RedPocket is rather an indicator that the buyer piss on the big four and their behavior.

I don't want any carrier messing with my devices, no logotypes, no bloat, no restrictions or any alterations. It should be 100% clean as the manufacturer designed it. That is "status".:)

----------

So, switching to Straight Talk, what do you lose in the bargain? Does MMS still work? Visual Voicemail? Etc.?

I am using Straight Talk but with a Galaxy Note GT-N7000 but can confirm that it is working great, both MMS, data and everything.

I am not using Visual Voicemail though since I prefer Google Voice and use it for both the voice mail and international calls.

I can recommend Straight Talk and both the service and quality is even better than Verizon that I used before (with a Thunderbolt) but that is from my perspective with the Note.

Paying $45 and be able to buy unlocked phones is certainly worth it, I see no reason to pay $100 or more for service. I am used to the European prices and think the big four are completely outrageous.
 
I have 2 concerns about this. First, this little tidbit:



When I go to that link, it lists the Coming Soon cities and I live no where near any of them. The closest is Pittsburgh but it's about a 90 min drive there. Yet when I check the Coverage Map, where I live, work, and everywhere in between is covered, and I don't travel that much so that isn't a problem. Could I order it online and still use it in my areas or since I'm not in their "market cities" I couldn't use it?

Second, I've never used Cricket, nor know anyone who does. I just wonder how good their service is (clear calls, typical 3G speeds, etc). If their data speeds are like Sprint, then I think I would pass.

I live in Pgh and have had Cricket for 5 years because I have teenagers and they offer unlimited calling and texting that other carriers don't. Plus, it's only about $65 with tax for the full smartphone services. My husband pays about $80 through work for his Droid, and he has limited texts and calls. The service is sporadic when you hit certain areas outside of their coverage areas. Traveling across state and to Charlotte, NC I found that even when I didn't have call service, I may have text service. I don't go online often except for facebook on my phone and I found that towards the end of the month, the internet services get a bit slow. After reading the disclaimer on cricket's site I understand. They say that when you exceed a certain amount of download bits, your service will be slowed. I'm looking forward to getting the iPhone from Cricket.

What if you have a family plan? I pay ~$110-120 for 2 iPhones, 450min, no txt plan, 250mb data. If I we switch over Straight Talk or Cricket, your calculations will go 2X up, is this assumption correct?

I pay $128.30 per month for two android smartphones. Includes unlimited calling, texting, internet. The only problem is as I mentioned slower connection later in the month when I use a lot of internet. My plan says I get 1G of data for that price. The iPhone will have 2.3G for same price. I have been looking for a new phone as mine is a few years old and getting slow and temperamental, plus the camera is awful. I'd like to have the better camera that iPhone offers and it's only $100 more than my daughter's with alot more hard drive so I'm all for it.
 
Last edited:
re: status?

I don't think it's really about people thinking they have more "class" or "status" by carrying a phone branded with a major carrier's name on it!?

I know plenty of people who wish they could easily remove those carrier logos on their handsets, actually.

The reason for the class division comments is the reality of who tends to be the typical customer for the no-contract, pre-paid phones.

I used Cricket for a while, because I hate the carriers with their 2 year contracts full of restrictions. I tried out the very first Android device they offered on their network. Unfortunately, it was blatantly obvious I was far from their usual customer. They had a big struggle configuring my account properly for the Android smartphone package, because their reps weren't yet familiar with how it worked. They kept trying to put me on one of their data packages where everything goes through a web proxy server -- so most of the phone's functionality was broken. Then they got the billing all screwed up, and it took several billing cycles and phone calls to get that straightened out. (One rep. even hung up on me after treating me rudely on the phone, when I tried to explain why she misunderstood my issue.)

They were also clearly used to customers who had to come in or call up to make each month's payment, just before it was due. When I wanted to set it up so Cricket would simply bill my account each month -- that was difficult for them too! They kept trying to shut off my service for not paying each month, refusing to charge my credit card I put on file.

Then, I decided to visit my local Cricket Wireless store when I needed a new charger and case for my phone in a hurry. Unlike the corporate stores I was used to, this place was run like a pawn shop! A foreign guy made me wait while he had issues running another customer's credit card payment. (Turns out his co-worker was chatting on the only land-line phone in the store, in the back room, so their credit card machine couldn't dial out to run the card properly!) Then when I asked him about what he had for sale for my phone, I quickly learned "Everything $15 .... charger? $15 case? We have 3... All $15."

Don't get me wrong... I had high hopes for Cricket and their voice phone service was about as good as anything I had with any other carriers. They had a few little quirks with SMS texting and multimedia messaging, but those seemed to only affect web-based services that people could text you through, vs. people sending them from their own cellphones. Data was slow, but functional. With better smartphones like the iPhone, it could be real game-changer for them. (Their bargain-basement Android phones were pretty pathetic.) But these guys are a budget carrier, clearly staffed like one -- and you can easily see the "class" of their usual customers if you wait around in line at any of their local stores.


I think it is funny to read the arguments about the social class division between "prepaid" carriers and the big four.

For me, it is obviously a better deal to buy an unlocked phone and then go Straight Talk or RedPocket Mobile - or Cricket with the iPhone that this thread is about.

I don't see any "luxury" or "status" in paying $100 and then get a branded device (iPhone is luckily saved from that though) with a nice carrier logotype and bloatware installed. In Europe, it is rather "finer" to have an unlocked, standard device than those carrier branded ones.

It is a better deal to get a cheaper monthly plan with an unlocked phone that can be replaced whenever a new model comes out. The price calculations that has been provided in the thread is very telling. It doesn't matter what "clientele" that are opting for Cricket, the fact remains: the big four charges a lot and gives a crippled device in return. Either locked or branded or both. Personally, I am not into iPhones since I prefer the iPad when it comes to iOS and Android and other platforms when it comes to smartphones and just seeing what the carriers does with the devices (changing design, buttons, CPUs, radios, adding bloatware, locking down etc) makes it silly to even try to argue that having an account with AT&T or Verizon is some kind of "status" unlike the "poor prepaid customers".

There is NO STATUS or LUXURY with a BRANDED device. A perfectly standard, unlocked smartphone on Straight Talk or RedPocket is rather an indicator that the buyer piss on the big four and their behavior.

I don't want any carrier messing with my devices, no logotypes, no bloat, no restrictions or any alterations. It should be 100% clean as the manufacturer designed it. That is "status".:)

----------



I am using Straight Talk but with a Galaxy Note GT-N7000 but can confirm that it is working great, both MMS, data and everything.

I am not using Visual Voicemail though since I prefer Google Voice and use it for both the voice mail and international calls.

I can recommend Straight Talk and both the service and quality is even better than Verizon that I used before (with a Thunderbolt) but that is from my perspective with the Note.

Paying $45 and be able to buy unlocked phones is certainly worth it, I see no reason to pay $100 or more for service. I am used to the European prices and think the big four are completely outrageous.
 
I am using Straight Talk but with a Galaxy Note GT-N7000 but can confirm that it is working great, both MMS, data and everything.

I am not using Visual Voicemail though since I prefer Google Voice and use it for both the voice mail and international calls.

I can recommend Straight Talk and both the service and quality is even better than Verizon that I used before (with a Thunderbolt) but that is from my perspective with the Note.

Paying $45 and be able to buy unlocked phones is certainly worth it, I see no reason to pay $100 or more for service. I am used to the European prices and think the big four are completely outrageous.

Thanks, that's exactly what I wanted to hear. :cool:
 
Sorry to hear you had those problems. I had to get the $55 plan that included data when I bought my smartphone. They clearly state that tney have a smartphone plan price and if you buy one, that's what you get. At least in my store. As far as auto-debit billing, that's weird that you couldn't get it. When I bought my kids their phone for Christmas a few years ago, I had to get auto-debit billing. Like I've said, 5 years with minimal problems. I've had Sprint, Nextel, and Verizon and Cricket is by far the easiest I've used. When I've had a problem, I just run into my local store (run completely by Americans) they fix me right up. Even setting up a special ringtone because I'm too lazy to figure it out and since I don't use that feature often enough, I don't care to take my time with it.

I don't think it's really about people thinking they have more "class" or "status" by carrying a phone branded with a major carrier's name on it!?

I know plenty of people who wish they could easily remove those carrier logos on their handsets, actually.

The reason for the class division comments is the reality of who tends to be the typical customer for the no-contract, pre-paid phones.

I used Cricket for a while, because I hate the carriers with their 2 year contracts full of restrictions. I tried out the very first Android device they offered on their network. Unfortunately, it was blatantly obvious I was far from their usual customer. They had a big struggle configuring my account properly for the Android smartphone package, because their reps weren't yet familiar with how it worked. They kept trying to put me on one of their data packages where everything goes through a web proxy server -- so most of the phone's functionality was broken. Then they got the billing all screwed up, and it took several billing cycles and phone calls to get that straightened out. (One rep. even hung up on me after treating me rudely on the phone, when I tried to explain why she misunderstood my issue.)

They were also clearly used to customers who had to come in or call up to make each month's payment, just before it was due. When I wanted to set it up so Cricket would simply bill my account each month -- that was difficult for them too! They kept trying to shut off my service for not paying each month, refusing to charge my credit card I put on file.

Then, I decided to visit my local Cricket Wireless store when I needed a new charger and case for my phone in a hurry. Unlike the corporate stores I was used to, this place was run like a pawn shop! A foreign guy made me wait while he had issues running another customer's credit card payment. (Turns out his co-worker was chatting on the only land-line phone in the store, in the back room, so their credit card machine couldn't dial out to run the card properly!) Then when I asked him about what he had for sale for my phone, I quickly learned "Everything $15 .... charger? $15 case? We have 3... All $15."

Don't get me wrong... I had high hopes for Cricket and their voice phone service was about as good as anything I had with any other carriers. They had a few little quirks with SMS texting and multimedia messaging, but those seemed to only affect web-based services that people could text you through, vs. people sending them from their own cellphones. Data was slow, but functional. With better smartphones like the iPhone, it could be real game-changer for them. (Their bargain-basement Android phones were pretty pathetic.) But these guys are a budget carrier, clearly staffed like one -- and you can easily see the "class" of their usual customers if you wait around in line at any of their local stores.
 
Quick question:

Actually I have an Unlocked Iphone 4S and with it I'm using an At&t business plan, no contract. I go with this plan Unlimited calls, Unlimited text and 3Gb of data in 4G (I live in Los Angeles).

I'm paying $55 x month ($63 with tax). Do you think it's possible to get something better than this deal or not? (Straight Talk sounds a really good deal but is it better than what I got?)

Thanks is advice.
 
I must say I never expected Apple to participate in the race to the bottom.

Cricket is akin to a check cashing service for the credit challenged, highly irresponsible segment of the population.

That Apple would even consider this speaks volumes about their addiction to profits first, foremost, and above all.

Yes, yes, I can imagine the responses now...

"but that's what corporations do, maximize profits".... to which I say, there _is_ a limit.

It's not like Apple is struggling desperately to survive.

This ought to be interesting. I surely wouldn't want to work in AppleCare or at the Genius bar with this type of clientele.

An all time low for Apple, once the premier company of stellar design and beautiful products.

Irresponsible huh? The irresponsible ones are the ones on major plans not getting value for their $$$.

Have you ever done the math on how much someone pays on a contract plan vs a prepaid plan. Basic unlimited plan on AT&T over 2 years...$2240 (1GB) Most I know have the $110 plan which is $2840. Unlimited plan on Cricket/Virgin with upfront iPhone...$1900. Going prepaid with $30 plan $1400.

Do the math. Considering MOST are within WiFi range for the majority of the day (their work/home), major carrier plans are a rip off. They are fine for people who NEED the coverage, like salespeople, traveling for work, etc...but most do not need the major plans/carriers.

The thing I've learned over the years...people who are bad with their money are poor. People who look for the best deals are usually well off.
 
Have you ever done the math on how much someone pays on a contract plan vs a prepaid plan.
I've done the math. I always do the math on everything.

I also have the invoices & statements to prove the price I've already paid (not just calculated from plan pricing lists) and in my personal usage scenario, I save significant money each year by using AT&T and remaining a loyal customer.

In addition, as a highly skilled negotiator, after five straight years of loyalty to AT&T, I called and negotiated a very favorable rate based on my lifetime value to them. As a result, I've enjoyed a strong, discounted rate on my unlimited data, voice & text bundle.

Nothing beats paying your bill on time, demonstrating loyalty, and getting compensated for it.

Thanks AT&T!
 
Register on MacRumors! This sidebar will go away, and you'll see fewer ads.