Post paid vs Prepaid ?

Post paid vs Prepaid ?

 
Began with AT&T in 2004,  
 
Last year I went prepaid because the cost of the smallest plan was too much (1 line, 450 min/unlimited text= $100) Went prepaid with $50 unlimited talk & text, then changed to the $60 to include 2 gigs of data,  
 
Purchased a new smartphone to only find out that the built in 'hotspot' feature was NOT usable for prepaid,   Yesterday I went into our local AT&T store and went back to post paid for $45 unlimited talk, text WITH only  300 MB of data...  
 
I would seriously think that if you wanted more people 'in-plan' you would make the post paid plans more competitive to the prepaid.  
 
Seems prepaid gets the better plan, but less features.  While post paid may have some better features but less competitive when it comes to the plan ??? Shouldn't this be the other way around ???????????
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Message 1 of 14
Professor

Re: Post paid vs Prepaid ?

No, this sounds right to me.  Prepaid plans were designed initially for people with simple needs .  Prepaid plans have expanded over recent years to include text messaging and data services.  There are some prepaid services that include mobile hotspot services today, so I would imagine that others add features soon in order to stay competitive.

 

By the way, how did you get $100 for 450 minutes and unlimited text messaging?  That should have only been $60 plus taxes and fees.  I can't imagine that there is a jurisdiction that charges $40 in taxes on a $60 cellular bill.

Message 2 of 14

Re: Post paid vs Prepaid ?

1 line, $40 for the 450 min (the cheapest plan), another $19.99 for the unlimited text, add on taxes, fee's for this that and the other, phone insurance,  my bill came to $100

 

I still think post paid should have better plans and features to compete with the prepaid, seems like normal here at AT&T, pay MORE, get LESS !

Message 3 of 14
Community Manager

Re: Post paid vs Prepaid ?

Hello adams032903.

 

There are many more benefits of having a postpaid plan and therefore a price difference. Postpaid plans offer more coverage via free domestic roaming, worldwide international roaming (prepaid allows to roam in Canada and Mexico only), different customer service centers and an ability to purchase great phones at subsidized prices vs full retail with prepaid.

 

Please let us know if you have any other questions.

 

Thank you,

Dmitriy


Rethink Possible


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Employee Contributor*
*I am an AT&T employee and the postings on this site are my own and don't necessarily represent AT&T's position, strategies or opinions.
Message 4 of 14

Re: Post paid vs Prepaid ?

Prepaid - Unlimited talk, text and 2 gigs of data, (internet sharing not accessable even thou its built into the phone) = $60

 

Post paid - (same phone) Unlimited talk, text with the same 2 gigs of data (mobile share plan) = $95

 

So in essesance, just to have the internet sharring/hotspot feature accesable on the same phone -  would cost $35 MORE for being postpaid.

 

How is that right ???????????????  How does AT&T justify a $35 price difference ????

 

And trust me, AT&T customer service is NOT worth a $35 jump.

Message 5 of 14
Professor

Re: Post paid vs Prepaid ?


adams032903 wrote:

1 line, $40 for the 450 min (the cheapest plan), another $19.99 for the unlimited text, add on taxes, fee's for this that and the other, phone insurance,  my bill came to $100

 

I still think post paid should have better plans and features to compete with the prepaid, seems like normal here at AT&T, pay MORE, get LESS !


OK, so you had phone insurance.  I didn't see that in the first post.  Still, that seems like a lot of money for taxes and fees.  When I had only one line, the base price was $52.50 (after discount).  With taxes and fees, it came to around $60.  I know that different jurisdictions charge different rates for taxes, but your bill total seems high.

Message 6 of 14
ACE - Professor

Re: Post paid vs Prepaid ?


adams032903 wrote:

Prepaid - Unlimited talk, text and 2 gigs of data, (internet sharing not accessable even thou its built into the phone) = $60

 

Post paid - (same phone) Unlimited talk, text with the same 2 gigs of data (mobile share plan) = $95

 

So in essesance, just to have the internet sharring/hotspot feature accesable on the same phone -  would cost $35 MORE for being postpaid.

 

How is that right ???????????????  How does AT&T justify a $35 price difference ????

 

And trust me, AT&T customer service is NOT worth a $35 jump.


The subsidized phone purchase is probably the biggest reason. For many people, it's worth more per month not to have to shell about $600+ dollars for a phone. 

 

Having insurance available is another benefit. GoPhone customer do not have the option to purchase insurance, so they might have to pay full price AGAIN should their phone break.

*The views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
Message 7 of 14

Re: Post paid vs Prepaid ?

Thats what it was for me here in PA, when I had both me and my husbands non smart phone for the same 450 minutes (shared) and unlimited text on my line, after all the taxes (state & fed) then all the extra fee's they tag on, I was about $120 all said & done.  I removed his line to repaid, same phone, for the 10 cent a minute and a $25 prepaid card works nicely for him, that works out to about $8 a month, mine however, I text, and talk, so just my line was just about the $100 mark when I went prepaid.  No lie !

 

In addition to my other beef about the differences between post paid & prepaid, the $35 price jump isn't justified, sure IF you renew or extend your 'contract' for another 2 years to get a phone at a discount, that still doesn't justify the $35 difference for the same identical plan.

 

Bringing my own phone into a post paid (no 2 year contract) unlimited talk, text & 2 gigs of data would be $60 prepaid, the only difference is having the abbility to tether my phone to my tablet !

 

Having that abbility isn't worth a $35 price increase, after all, if you get 2 gigs of data, you're paying for 2 gigs of data, its yours, and how you use it is your business, I don't see Concast telling me I can't share my homes WI-FI with my blueray player or cell phone, or laptop, point being, I'm paying for the service, its mine to use as I want. AT&T and the other carriers will hopefully soon see this, advising customers to buy another separate device (mobile hotspot) and pay for more data when the phone has that feature built in and you already get the data, why would anyone want to pay more another piece of equipment and buy more data when they already have it ???

Message 8 of 14
Professor

Re: Post paid vs Prepaid ?

You either had a really old plan or something is off here.  Only individual plans had an option for 450 minutes.  The lowest family plan is 550 minutes (not available in all areas) or 700 minutes (available everywhere).

 

Family plans will have the additional fee of $9.99 per line and taxes and fees for each line, so your situation would be a bit different from the OP's situation with one line.

Message 9 of 14

Re: Post paid vs Prepaid ?

No nothing is off, my last physical bill before going prepaid was $95 and change for 1 line. And this was only less then 1 year ago.

Message 10 of 14
Employee

Re: Post paid vs Prepaid ?

Hi adams03290

 

Postpaid service is always a little more, but you gain access to our full network, special pricing on the most popular devices and more discounts now with the mobile share value plans. You also may have discounts though your employer as well.

 

your old post paid plan sounded like something was wrong. Average bill for 40 + 20 comes to be about 72ish dollars a month in PA. I could see $95 a month if you had a 2GB data plan attached.

 

if you have your own device, with the new mobile share plans, you should be much cheaper now.

Employee Contributor*
*I am an AT&T employee and the postings on this site are my own and don't necessarily represent AT&T's position, strategies or opinions.
Message 11 of 14
Professor

Re: Post paid vs Prepaid ?


adams032903 wrote:

No nothing is off, my last physical bill before going prepaid was $95 and change for 1 line. And this was only less then 1 year ago.


OK, your previous post said that there were two lines on a 450-minute plan.

Message 12 of 14
ACE - Professor

Re: Post paid vs Prepaid ?


adams032903 wrote:

Thats what it was for me here in PA, when I had both me and my husbands non smart phone for the same 450 minutes (shared) and unlimited text on my line, after all the taxes (state & fed) then all the extra fee's they tag on, I was about $120 all said & done.  I removed his line to repaid, same phone, for the 10 cent a minute and a $25 prepaid card works nicely for him, that works out to about $8 a month, mine however, I text, and talk, so just my line was just about the $100 mark when I went prepaid.  No lie !

 

In addition to my other beef about the differences between post paid & prepaid, the $35 price jump isn't justified, sure IF you renew or extend your 'contract' for another 2 years to get a phone at a discount, that still doesn't justify the $35 difference for the same identical plan.

 

Bringing my own phone into a post paid (no 2 year contract) unlimited talk, text & 2 gigs of data would be $60 prepaid, the only difference is having the abbility to tether my phone to my tablet !

 

Having that abbility isn't worth a $35 price increase, after all, if you get 2 gigs of data, you're paying for 2 gigs of data, its yours, and how you use it is your business, I don't see Concast telling me I can't share my homes WI-FI with my blueray player or cell phone, or laptop, point being, I'm paying for the service, its mine to use as I want. AT&T and the other carriers will hopefully soon see this, advising customers to buy another separate device (mobile hotspot) and pay for more data when the phone has that feature built in and you already get the data, why would anyone want to pay more another piece of equipment and buy more data when they already have it ???


If you find the benefits of the post-paid plan are not worth it, then it sounds like a prepaid plan is better for you. I've done the same thing. The GoPhone works just fine for my needs. 

 

Others view it differently, and AT&T has the post-paid option for them.

*The views and opinions expressed on this forum are purely my own. Any product claim, statistic, quote, or other representation about a product or service should be verified with the manufacturer, provider, or party.
Message 13 of 14
Highlighted
Employee

Re: Post paid vs Prepaid ?

Hey,

 

Like MicCheck mentioned, post paid  has really 3 things going for it that prepaid doesnt that means it costs AT&T more, and in turn customers more.

 

1) Contract pricing, Until recently, prices were the same for 'in' or 'out' of contract, probably because it was figured most people would be upgrading every 2 years., so it was figured into the price.

confirm the pricing www.myattrpc.com for w/o contract pricing here.

 

2) Billing. On prepaid, basically, AT&T gets their sooner relative to the service they provide, (beginning of the service if not service), which effectively means they can reinvest it sooner, and potential make more off of it. , that's especially true, considering that many people can extensions beyond the typical 3 weeks for the due date.

 

3) Usage. On prepaid, AT&T can expect pretty reliable usage, if someone uses too much, they get cutoff until they get more. On postpaid, someone can use in excess of hundreds of dollars of overage before every having to worry about issues. AT&T has to be able to cope  unexpected usage.

 

Edit: I forgot one.

4) More taxes. For some reason post paid, IIRC has more taxes/fees associated with it.

 

-Alex

Employee Contributor*
*I am an AT&T employee and the postings on this site are my own and don't necessarily represent AT&T's position, strategies or opinions.
Message 14 of 14
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