Slashdot Mirror


Smartphones Invade the Prepaid Market

jfruh writes "When tech geeks debate the state of the smartphone world, they usually focus on the iPhone and its high-end Android rivals from the major carriers. But Android is rapidly entering the lower-end world of contractless prepaid phones that you can buy at 7-11 or Wal-Mart. 63 percent of prepaid phones sold in 2011 were smartphones, and while they might not offer cutting-edge hardware or easy customization, they do provide a smartphone experience without an onerous contract."

32 of 173 comments (clear)

  1. Can't wait.. by aero2600-5 · · Score: 5, Interesting

    As soon as my early termination fee is low enough, I'm shitcanning AT&T and getting a pre-paid android. Probably going to go with Virgin Mobile. I've had success with them in the past.

    --
    Please stop hurting America -- Jon Stewart
    1. Re:Can't wait.. by garcia · · Score: 2

      Probably going to go with Virgin Mobile.

      I have never had anything but poor experiences with them myself but I fully support anyone changing from one shitty carrier to another.

      Believe me, I get it. I hated AT&T and then I hated T-mobile. Honestly I don't mind AT&T now that I have a small business account (their reps are great and they have never overbilled me or fucked me over) but don't think that you're suddenly going to have a better experience on one carrier over another; they all suck.

      Best of luck to you. I hope VM rocks it out and your prepaid account solves all of your problems but, more than likely, it's going to be more of the same with a different name.

    2. Re:Can't wait.. by Anonymous Coward · · Score: 4, Informative

      ESN blocks are carrier based, meaning switching carriers as long as the phone is comparable will often avoid a blacklist. That said, buying bad ESN phones is like clicking on spam, it only promote more unwanted abuse (theif, faking of lost phone for insurance) though there are legitimate cases (found phone again long after reported stolen, found lost phone but no way to contact original owner).

      But yes, you can get a defective phone, but that applies to all used and new phones bought (though mostly used). You'll simply have to either rely on whatever return policy is in place and vendor reliability/review/rating available. Bad ESN does not equal bad hardware, so that basically constitutes fraud if not described as such.

    3. Re:Can't wait.. by Alex+Zepeda · · Score: 3, Interesting

      *shrug*

      In a previous life I dealt with Verizon Wireless and AT&T small business services. We had some questions about issues we were having with their respective data networks. VZW was straight forward and very willing to work with us. The AT&T account rep was clueless, and I had to wander over to broadbandreports.com to escalate an issue. The issue was escalated to some sort of "executive" support that consisted of "Why the fuck do you want me to call you?" and I just kinda gave up at that point.

      AT&T's residential service was worse for me. The place I'm at now originally had about eight lines on it, so there was a DAML... which meant no DSL or 56k dialup. Thankfully I had nice, expensive long-distance service because they slammed me when I signed up for voice service. Unfortunately, AT&T flat refused to offer DSL on the line to the ISP I wanted to use. So, yeah, I had to quite literally beg AT&T through broadbandreports (then dslreports.com) to provide service. Eventually they relented. Best they could do was G.DMT (no ADSL2, no U-Verse in this neck of the woods). Now that ISP is a proper CLEC and offers unthrottled ADSL2 w/ proper POTS service I'm AT&T free... I couldn't be happier. But AT&T, well, I've gotten countless calls and letters from them pleading with me to return.

      Look, I've had problems with VZW, and they were bad (some were illegal actions on VZW's part). But I've never once been forced to resort back channels to get the problems fixed. Likewise I've friends that use Sprint (back in the days when they'd charge you to call customer service) and T-Mobile. Nobody even comes close to being as consistently bad as PacBell/SBC/AT&T. With AT&T to get any level of decent support I've got to go to broadbandreports and whine until a sympathetic tech has the time to respond. AT&T can fucking rot for all I care.

      As for Virgin Mobile, I've been with them for about ten months now. So far so good. The coverage has definitely taken a dip since Sprint started carrying the iPhone. I've got an Optimus V and it's a great little phone and I've been working with a few people to firm up a port of CyanogenMod to it (wanna talk frustrating, try getting this stuff integrated into the Cyanogen tree). Better cell and GPS radios than my friends' Motorola Triumphs.

      --
      The revolution will be mocked
    4. Re:Can't wait.. by JWSmythe · · Score: 2

          I'd say you should.

          I was laid off several years ago. At the time, I had already cancelled my personal cell, because work required that I carry theirs. When they laid me off, suddenly I had no phone. No way for people to call (namely, prospective employers).

          I was already researching prepaid providers, that I could send data over their network for telemetry of my car. It was just something I was toying with. I wanted to have it send GPS data, OBD-II data, and the occasional shot from a forward and rear facing camera.

          On the drive home, I swung into Best Buy. They were on the way, and had some dirt cheap phones. I think I spent all of $15 on the phone, and $30 for unlimited use.

          Most of my friends have gone to prepaid plans. They use a variety of providers. I'm still sticking with Boost. I've had a few smart phones with them. It meets all my qualifications. I get unlimited ... well .. everything. I can talk as long as I want. I can tether it as needed. When I want a newer, better phone, I just buy it. I don't get the special discount rate by contracting for an extra years, with the risk of upsetting them and paying overages. When they decide to screw with me, I don't want to be contractually obliged to pay early termination fees.

      I could decide tomorrow that Boost is horrible, sell my phone on Craigslist or eBay, and start with another prepaid provider. The only advantage I have with staying with Boost is that they have their "shrinkage" plan, and I've been with them long enough to get a nice discount on my rate.

      A few people have said Virgin Mobile is the best. nice. Except for the not so fine print.
      http://www.virginmobileusa.com/cell-phone-plans/beyond-talk-plans.jsp?tab=tab2#
      "All Plans Include 2.5GB Per Month of Full-Speed Data"

      Unlimited, as long as you use 2.5GB or less.

      Boost doesn't mention it, because it seems they monitor just about nothing. The only active monitoring that they appear to do is watching for the end of your paid period. By the ToS, tethering can be considered a violation of the ToS, but it's by their discretion. They don't really care, unless it's your only connection, and your using it to download torrents, or some other high utilization activity.

      I've tethered something like a half dozen times in the last year. When I've done it, except once, I was very satisfied with their speeds. A few times, it was because I was in a hotel with awful speeds. It's not my 25Mb/s FiOS line, but I can connect from any arbitrary location, including driving down the road (as a passenger, of course). The only time it didn't work was at the last space shuttle launch, and the cell network was pretty much saturated. We had an awful time even getting phone calls out.

      --
      Serious? Seriousness is well above my pay grade.
  2. News? by shift3 · · Score: 3, Interesting

    How is this news? I have had a Samsung Precedent from Wallmart (Sprint network, CDMA) for 4 months now... Decent phone... But you have to root it and install custom mods to get full use of it. Stock only hase android 2.2.3 if i remember... I am running AreaRom's 2.3.7 now... So much smoother.

    --
    You fall and receive 6334 damage.
    You die.
  3. Re:Indeed by Gothmolly · · Score: 2

    Chickety-china, the chinese chicken.

    --
    I want to delete my account but Slashdot doesn't allow it.
  4. My 3GS is prepaid with no onerous contract by enjar · · Score: 5, Informative

    Buy used 3GS for ~$150. Get GoPhone SIM. Insert in phone. Change APN if you want data. It takes three seconds.

    Prepaid smartphone. No onerous contract. No jailbreak required. Works fine with iTunes and App Store.

    1. Re:My 3GS is prepaid with no onerous contract by Nerdfest · · Score: 2

      You can get a more powerful Android phone new, so unless you have your heart set on Apple, there are probably better choices.

    2. Re:My 3GS is prepaid with no onerous contract by Anonymous Coward · · Score: 3, Informative

      Straight Talk SIM (straighttalksim.com) is bring your own device (AT&T, T-Mobile or unlocked) and offers "unlimited" everything for $45 a month and even offers micro-sim cards. Uses AT&T's network and 3G bands.

    3. Re:My 3GS is prepaid with no onerous contract by enjar · · Score: 2

      Power isn't one of my big requirements. I don't deny that there are better/faster/newer on the market, either. But the phones mentioned in the linked article are the low-end for the most part, and picking up a used 3GS might be price-competitive for someone looking at prepaid.

      - the power of the 3GS is certainly enough for how I use it (play music, send a text to my wife, talk on phone, play games occasionally)
      - I am generally in a wifi zone at home or work
      - I don't talk much on the phone
      - I already had all my music and podcasts organized in iTunes
      - I already had the ipod mount in the car
      - I was already on prepaid for a while, but I constantly forgot to charge the prepaid phone

      It's also a good way to keep a handle on teen phone use. My co-worker has four 3GS's in his household (two adults, one teen, one tween) using this method and the total bill (includes data, texting for the teen/tween, voice) runs about $100/month for four handsets.

  5. Virgin LG Optimus V by Dan+East · · Score: 3, Informative

    I did a lot of research on this before Christmas for gifts for my kids. The best deal I could find is Virgin's LG Optimus V Android phone. Walmart sells these phones for $99, no contract. For $99 you get a heck of a lot - all the standard smartphone stuff - GPS, Wifi, accelerometer, capacitive multi touch screen, 3 megapixel camera, SD slot, etc. Now just as-is, with no service, you essentially have an Android equivalent to the iPod Touch. Netflix, youtube, pandora, etc, all play great over Wifi. My Walmart hasn't been able to keep these in stock for months. They'll get several in, and they are gone the next day.
        Then on top of that you can get service for $35 for 30 days, no contract. Unlimited data, unlimited texting, and 300 minutes of talk time. For my kids that is perfect. They mainly text and consume data. No standard carrier can come close to touching that with any contract plans. Literally, you're looking at DOUBLE monthly rates for the same plan (and you're going to have a data cap). For $50 a month you also get unlimited talk time.
        So this is the route I went for my two children that are old enough to need / use a cellphone, and it's worked out great.
        One note is that last week texting stopped working for almost a full 24 hours on all Virgin phones in my area. Neither sending or receiving would work. Then suddenly all the texting flooded both in and out when it started working again. I've never seen that happen with a contract carrier before.

    --
    Better known as 318230.
    1. Re:Virgin LG Optimus V by Rufus+Firefly · · Score: 2
      I picked up the Optimus V last mother's day for my wife who isn't exactly ... gentle with phones. (Let's just say that she couldn't figure out why she had all these black squares in her gallery--turns out she just throws the thing in her purse w/out turning the damned thing off and has taken many, many pictures of the inside of her purse...) The phone is a very solid phone, and all the prepaid (and contract) carriers have a version of it. Right now, the price is right at about $100, but I've seen them on sale lately for as low as $75.

      Verizon can go piss up a rope, AT&T can lick my asshole; the only thing I miss with VM is the ability to roam, but anywhere Sprint has a tower, I have coverage.

  6. Cheap compared to by tepples · · Score: 4, Interesting

    Decent phone, and very cheap plan.

    True, Virgin Mobile USA's $35 per month smartphone plan is "very cheap" compared to what the premium carriers charge, but it's still a lot more than the same carrier's cheapest dumbphone plan at $7 per month. I'd think the carriers would offer some way to gradually transition from a dumbphone to a smartphone. But Virgin Mobile USA's cheapest smartphone plan still provides ten times more voice minutes per month than I foresee using, given that most of my calls that aren't related to arranging a ride can wait for a land line whose bill I split with another member of the household. For someone who wants a smartphone as an upgrade from the combination of a dumbphone and PDA but isn't yet ready to pay $336 more per year, what U.S. carrier do you recommend? T-Mobile?

    1. Re:Cheap compared to by Rockoon · · Score: 2, Informative

      Who has a $7/month dumbphone plan?

      Just like the AC who posted, I have a Tracfone (mine is essentially a classic Motorola Razr) that only requires an $80/year investment for 480 minutes not counting bonus minutes (generally another 90/year) granted for using promotional codes every 3 months. After 3 years I now have like 1200 minutes saved up.

      ..and for the record, this is not the cheapest you can get in the prepaid arena. Tracfone is carrier agnostic (will use any of the 3 networks at any time) while some of the carrier-specific prepaid plans work out quite a bit cheaper if you dont use many minutes.

      Texts cost 30 seconds each.

      --
      "His name was James Damore."
    2. Re:Cheap compared to by guises · · Score: 3, Informative

      You can also go prepaid. I have a Nexus One with a prepaid T-Mobile SIM - $100 is good for a year if I don't use it too much, but I don't get any data. Have to look around for wifi when I occasionally need it.

      The other nice thing about prepaid is that you don't have to give up any personal information, not even your name. I've got a firewall on my phone and I'm reasonably sure that unwelcome data isn't getting out, but it's still nice to have that extra bit of confidence.

  7. Re:I did a lot of research on this by TaoPhoenix · · Score: 2

    It depends on your timing.

    I used to hate cell phones back when it was "OMG what if you needed an Emergency call?" Stupid pieces of junk.

    Then I found an option to convert an iPhone to an AT&T GoPhone plan. Saved me $1500 so far. Because I never call anyone, but i dial my bank, and it doesn't autodial in my pocket and it had a calculator and Shredder (Chess) Mobile. End of Line.

    Total Fees: about $300 per year.

    --
    My first Journal Entry ever, in 8 years! http://slashdot.org/journal/365947/aphelion-scifi-fantasy-horror-poetry-webzine
  8. Tmobile and Walmart by metalmaster · · Score: 2

    Im not sure if they still offer the plan, but Walmart sells the Samsung Exhibit II 4G phone for ~$200. I picked up 2 for me and my girlfriend and they work very well with my tmobile employee account. When I bought these phones Walmart had a prepaid plan that offered 100mins, unlimited text and data for $30 a month. That is/was a helluva deal considering you could get your voip app of choice and effectively turn unlimited data into unlimited minutes.

  9. Slamming by tepples · · Score: 2

    Buy used 3GS for ~$150. Get GoPhone SIM.

    I've read horror stories of being "slammed" to an expensive data plan once someone puts a SIM for a voice-only plan into a smartphone. Has AT&T stopped doing this, or has it never applied to GoPhone?

    1. Re:Slamming by spidr_mnky · · Score: 3, Informative

      They definitely do it. My girlfriend just bought a Fusion (marketed by AT&T as a pay-as-you-go thing) with the sole intention of ditching the sim card that came with it and using it on her existing AT&T voice only plan. Suddenly they tell her she has a data plan, and she's going to pay for it monthly. We're still working out exactly how to react to that, but yeah, they're apparently serious about it.

    2. Re:Slamming by 93+Escort+Wagon · · Score: 2

      They definitely do it. My girlfriend just bought a Fusion (marketed by AT&T as a pay-as-you-go thing) with the sole intention of ditching the sim card that came with it and using it on her existing AT&T voice only plan. Suddenly they tell her she has a data plan, and she's going to pay for it monthly. We're still working out exactly how to react to that, but yeah, they're apparently serious about it.

      AT&T says, right up front, that their pay-as-you-go smart phones require a data plan. The lowest-end plan is five bucks a month - not particularly onerous.

      I grabbed their first pay-as-you-go smartphone - an LG Thrive - when it became available last March. I'm not crazy about Android, but it certainly has saved me a lot of money versus the monthly T-Mobile plan I was on previously. And things generally work okay. But there are significant bugs in the month-to-month rollover code on both their SMS and data plans. Most months things will roll over okay, but count on once or twice a year having your balance simply disappear - and don't expect their Indian support people to be useful in rectifying the problem. The gophone support people are truly horrible - worst support I've ever dealt with, and it's not even close.

      --
      #DeleteChrome
    3. Re:Slamming by Renraku · · Score: 2

      Their lowest plan is $5 a month. But for smartphones, you pay an extra fee. And for SPECIAL smartphones, you pay an even higher fee. If you want unlimited, you'll pay a higher fee, but unlimited really isn't unlimited so if you need more, you'll pay a higher fee. If you need less, you'll end up running over, and paying a higher fee.

      That $5 will turn into $20+.

      --
      Job? I don't have time to get a job! Who will sit around and bitch about being broke and unemployed then?
  10. I have an unlocked device. by Anonymous Coward · · Score: 2, Interesting

    Here in India, you can only buy unlocked phone. Carrier subsidies aren't available. So the prices of phones are very high. Because of this you don't see many smartphones. Iphones are almost non existent, cheap android phones are seen more though. I have a prepaid connection, non sms pack, no data pack, only 0.6 USD a month. With everything activated I have to spend just 3.6 USD a month. :D

    1. Re:I have an unlocked device. by icebike · · Score: 4, Insightful

      I wish all phones were sold unlocked, and I wish all carrier subsidies were illegal.
      The price of phones rises to absorb all the subsidy they can extract from the carriers.

      The iPhone was a huge siphon, emptying AT&Ts pockets into Apples, making Apple the
      richest company in sight on a phone that really does not cost that much to produce.
      Now Apple are doing the same thing to the other carriers.

      If people had to buy their own phones the net effect would be lower prices, or they would be buying other phones. Greece, like India doesn't allow subsidies. Apple isn't selling well there. If Apple cut its profit margin in half, they would open up vast new markets.

      Some of the lower-to-mid level Android phones do well in those same markets.

      --
      Sig Battery depleted. Reverting to safe mode.
    2. Re:I have an unlocked device. by kamapuaa · · Score: 2

      Why should the government prohibit people from entering into a private contract for a legal product/service? Isn't that the opposite of what the government should be doing? If you don't want to get a contract, don't get one.

      Right now in the US, you're perfectly able to get a pay-as-you-go phone (every supermarket or convenience store or electronics store will sell them), or you can easily get a cell phone with a contract. That is the ideal system.

      --
      Slashdot: providing anti-social weirdos a soapbox, since 1997.
    3. Re:I have an unlocked device. by shutdown+-p+now · · Score: 4, Insightful

      The problem in US is that if you bring your own phone, your contract is not really any cheaper than if you got one from them with a contract - in other words, you're always paying the "subsidized" price, regardless of whether there's a phone to subsidize or not. That smacks of forced bundling to me, and given that all carriers do that, with the exception of T-Mo, it may well be regarded as cartel collusion to squeeze the customers.

    4. Re:I have an unlocked device. by Anonymous Coward · · Score: 2, Insightful

      The government should support market transparency, to allow the market economy to do its work. When products and services are made so convoluted that most people can't compare any two products in a meaningful way anymore, then this hinders competition. One of the theoretical prerequisites of the free market theory is an informed customer. One of the tools that are most frequently used by companies which don't want to compete fairly is information asymmetry.

      The cellphone business is not and can not be an unregulated market with sufficient competition, due to the scarcity of usable frequencies. It would therefore be advisable to forbid tie-ins into that market by businesses which would otherwise see much more competition.

  11. Never again by WillKemp · · Score: 3, Informative

    I've had an android phone (HTC Desire) on prepaid for nearly 2 years now. I've had mobile contracts three times over the years - twice in Australia and once in Britain - and every time i left the country long before the contract expired, and had to pay it out. I'll never get a contract again! Prepaid's cheaper anyway.

  12. Why sacrifice your phone? by batistuta · · Score: 3, Insightful

    The article implies that if you go pre-paid, you have to put-up with a low-end phone. Why? Can't you get a top-end unlocked Samsung Galaxy S2 to use with your pre-paid? Sure, it will cost you 600 dollar. But you will not have to pay 80 dollar/month on your plan. And the best: if they screw you, you can just dump them and switch provider while keeping your phone.

    The ability to change carriers easily is great for competition. Look at how it worked in Europe: you can get a line at zero cost per month. Add 4 euros per month and you have unlimited calls within your network. 10 euros/month for data plan. And some give you at the same time an airbag for a maximum of 40 euros/month, so you never pay more than that no matter what. If people moved out of the big carriers, same thing will happen in the US.

  13. Americans are forced in contracts? by i+ate+my+neighbour · · Score: 5, Insightful

    In actually free parts of the world, we can buy any smartphone without any contracts. Obviously, initial cost is higher but usually worth in the long run.

    1. Re:Americans are forced in contracts? by the+plant+doctor · · Score: 2

      You can still buy one that's unlocked, not on contract, obviously as you noted the initial cost is higher, but it's possible.

      When I still lived in the States I had a Nokia 5800 and N97-mini, both were bought on the open market, not at the cellular provider and they worked just fine.

  14. Color me surprised by the+plant+doctor · · Score: 2

    I knew I couldn't be the only one. Granted, I live in the Philippines now, but I am from the States

    I have a Nokia N9 that I bought outright and just go pre-paid on it, previously had a Galaxy S. One of the best things for me about pre-paid here is that I can just turn the network on, use it and turn it off. There's a set fee of 5 pesos/15 minutes of use. I rarely use it with all the WIFI around, but when I need it that's pretty cheap and easy to do and the coverage here is very good. Now if only the American providers would adopt something more like this rather than forcing smart phone owners to an "unlimited" contract.