A prepaid mobile phone (also commonly referred to as pay-as-you-go, pay-as-you-talk, “pay and go”, or prepaid wireless) 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. Users are able to top up their credit at any time using a variety of payment mechanisms. The alternative billing method (and what is commonly referred to as a mobile phone contract) is the post-paid mobile phone, where a user enters into a long-term billing arrangement with a mobile network operator or carriage service provider (CSP).
However, most prepaid phones now offer roaming using one of the following methods:
* The prepaid mobile phone user dials a “trigger” number from the foreign location using a USSD message which is not charged for whilst roaming. Upon receipt of the USSD, the customer’s operator will then return the call. When the service calls back, the user is being charged for the cost of the service from the credit available in the home network. The service will then prompt the user to enter the dialled number of the party to be called. The disadvantage of this method of roaming is that the user will not be able to dial numbers directly from the handset. The advantage is that it works in almost all locations around the world since USSD is ubiquitous and free.
* The user can direct dial from their handset if the network they are roaming in supports CAMEL (Customised Applications for Mobile networks Enhanced Logic). This allows real time billing by the home operator without having to dial the customer back. The advantage is that it is more natural and works seamlessly. The disadvantage is that not all networks support CAMEL so the list of countries where a prepaid customer can use their phone abroad is smaller than for postpaid mobile phones.
Verizon Wireless offers three prepaid daily plans. The first is basic pay as you go for 25 cents per minute. The second costs 99 cents per day, only on days the phone is used, and has minutes for 10 cents each. This plan also includes unlimited mobile-to-mobile calling. The third costs $1.99 per day and provides unlimited minutes. There is actually a fourth plan, Unleashed, which includes unlimited talk, text, and mobile web (not smartphone data) for 50 dollars per month. Unleashed is available only in select markets, though.
Verizon also has three prepaid monthly plans. The first includes 450 minutes and costs $44.99 per month. Additional minutes are 45 cents each. The second includes 900 minutes and costs $64.99 per month. Additional minutes are 40 cents each. The unlimited minutes plan costs $74.99 per month.
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