The Benefits of using Pre-Paid Mobiles

The mobile phone industry can seem a complex and confusing industry when trying to decide which phone is for you, with the first decision being between pre-paid or mobile phone plans.

The mobile phone industry in Australia is reaching incredible levels with researchers putting Australia's total mobile phone ownership at 13.79 million with growth continuing at a rate of approximately 1.7 per cent since December. With the industry expanding and the latest technology being launched seemingly daily, it is easy to feel lost as to what you want from your phone.

Of course, at the basis of this selection is the original choice in the world of mobile phones: pre-paid or mobile phone plan.

This choice between using a pre-paid mobile and selecting a mobile phone plan is obviously a matter of preference for the user, but there are a number of things to consider before you decide either way.

Pre-paid mobiles are a pay-as-you-go system that are presented as ideal for those who are either are on a strict financial budget or for those that are fixed to a specific spending level such as with work phones or phones marketed for teenagers. In a standard pre-paid mobile kit you would receive your phone number, network access and a specific amount of credit for the phone. This credit is the entire basis for the pre-paid mobile phones industry as once this has run out or expired, you simply buy more credit and recharge to start again.

This is a key benefit, especially in light of the current global financial crisis which has resulted in many people cutting undue expenses.

This pay-as-you-go system is as opposed to the 12 to 24 months contracts that are offered with mobile phone plans which work on a fixed monthly amount that must be paid which entitles the user to a certain amount of phone usage. The cost of the handset may also be included in the monthly fee and there are exit fees attached when wanting to leave your mobile plan early.

The major benefit of the pre-paid mobiles is that you can control your expenditure on your mobile phone bill without any additional charges, late bill payments or high unexpected fees, hence why it is such a popular choice for work phones and teenagers.

Additionally, pre-paid mobile phones also come equipped with high value costs for both texts and calls with some offering free minutes, or other incentives, and can be an ideal choice for people who don't make a lot of phones calls or simply have a "in case of emergency" mobile phone. Even if the credit runs out or expires, you can still receive calls and dial emergency services.

However, it is important to note that credit does have an expiry date attached, sometimes a month, sometimes six months depending on the carrier. For example, most pre-paid mobile phones have a basic credit pack of $30 that entitles the user to say, $200 worth of calls and texts, which would expire within 4 weeks of the purchase date.

One disadvantage of the pre-paid mobile phone option is that most of the time international roaming may not be available, meaning that overseas use is not an option. Yet there is even an alternative for this as you can buy an overseas SIM card that will allow you to make calls.

Of course, the decision between a pre-paid mobile phone and a mobile phone plan should ultimately come down to what it is purpose is and what your calling habits are like. If you make a high number of calls and use your phone a great deal and enjoy additional features, then there are a number of plans available that cater for such users. However, if you simply use your phone for calls and texting, perhaps pre-paid credit is ideal.