Postpaid Wireless Demise!

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Postpaid Wireless Demise!

Postpaid wireless demise! Ok, so you must be asking yourself what do I really mean when I make that statement? A lot more is truly meant by saying that than simply to get your attention. The reality is that prepaid wireless has evolved to the point where there are very few reasons why one would believe that postpaid wireless should continue to be the predominant plan choice in North America. It used to be that prepaid wireless was for the credit challenged, the emergency phone or limited use customer, however, that's no longer the case.

I won't go into the benefits of prepaid wireless because that's covered here. I will, however, boil it down to the fact that there is now very little difference between prepaid (no contract) and postpaid (contract) type plans. It can be said that for that one, two, or three year contract that you sign, what you get is a discount on the upfront purchase of your phone. To learn more about handset subsidies and how they work, click here. With the evolution of prepaid, you can now find the most common/needed features on prepaid, including such things as:

Voicemail
Call waiting
Conference calling
Web
Navigation
Text messaging
Multi-media messaging
etc...

You also get more flexibility in terms of how you pay, including

The reality is that prepaid offers customers so much flexibility that postpaid wireless demise seems innevitable, no? Well, maybe it will take some time ;-). Signing up for a two year contract and getting a $300 phone for $50 or even free certainly is compelling! However, as features on handsets continue to get less and less expensive, much like the cost of computers became cheaper and cheaper over the years, carriers will be able to offer fully freatures phones at very low prices. And in the meantime, prepaid users can simply opt to pay more for a handset without a contract. Just how much people are will to pay to avoid a contract is an interesting question. Read what others have to say, and contribute your own opinion, by posting your feedback here.

Truth be told that prepaid wireless doesn't have the stigma in other countries (ex. Europe) that it does in North America. Perhaps it's a matter of the European environment where people move between regions and counties so fluidly, or perhaps it's the slow evolution of thought in North America, or a combination of both as well as other factors. People in other counties are more comfortable paying for technology (they don't expect everything to be free!), and they truly value the flexibilty of not being bound to a contract. It has nothing to do with social status, credit, or anything other than to say "why should I sign a contract and commit to making a minimum monthly payment just to get a discount on a phone?!" So is there a postpaid wireless demise on its way to North America?

I foresee a world where wireless carriers keep customers by providing truly exceptional products and customer service. Keeping customers more than satisfied, but happy with the products they use because they're fundamentally good products, and not because they're "stuck" in a contract. Imagine that? Is that so unbelievable? Provide me a good product/service and I'll stick with your company; if not, I'm gone, but don't expect to keep me by having me sign a rediculous legal document ;-).

With cheaper, fully featured phone options continuing to expand, and customers' frustration with unscrupulous contracts, I truly do see the coming of a postpaid wireless demise. Even if it's never truly a full death, postpaid wireless in North America is on a decline; watch for it!

Postpaid Wireless Demise!

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