Prepaid Mobile Phone

filed under | technology

Share/Bookmark

A prepaid mobile phone is a mobile phone for which credit is purchased in advance of service use. The purchased credit is used to pay for mobile phone services at the point the service is accessed or consumed. If there is no available credit then access to the requested service is denied by the mobile phone network. The history of the prepaid mobile phone begins in the 1990s when larger markets were being sought after by the mobile phone operators. Before this date, all mobile phone services were offered on a post paid basis, which excluded people with a poor credit rating. A prepaid plan may have a lower cost for low usage patterns (e.g. a telephone for emergency use) and make it easier to control spending by limiting indebtedness. They often have fewer contractual obligations - no early termination fee, freedom to change providers, plans, able to be used by those unable to take out a contract (i.e. under 18). Depending on the local laws, they may be available to those who do not have a permanent address, phone number, or credit card. This makes them popular amongst students away from their home towns and travellers. Often, pay-as-you-go customers pay more for their calls and SMS messages, and are limited in what they can do with their phone - calls to international or premium rate numbers may be blocked, and they may not be able to roam. These limitations are often due to the complexity of managing the credit system for high price calls, or when users are not on their home network. In addition, a prepaid phone has a balance which can be queried at any time, and also topped up periodically. Examples of ways in which the balance can be topped up are: a credit card or debit card, direct from a bank account using an ATM, in a retail store by purchasing a "top-up" or "refill" card at retail. These cards are stamped with a unique code (often under a scratch-off panel) which must be entered into the phone in order to add the credit onto the balance, in a retail store using a swipe card where the balance is credited automatically to the phone after the retailer accepts payment. Credit purchased for a prepaid mobile phone may have a time limit, for example 90 days from the date the last credit was added. In these cases, customers who do not add more credit before expiration will lose their remaining balance. [READ THE REST OF THIS ARTICLE]





wikisnap.com is not affiliated with or endorsed by wikipedia. wikipedia and the wikipedia globe are registered trademarks of wikipedia.org.
article content reproduced in compliance with wikipedia's copyright policy and gnu free documentation license
view our privacy policy and terms of service here