To enroll in a yearly cell phone plan, the customer will be required to fill out an application and provide information so that a credit check can be performed. The customer will then choose a plan that best fits her needs. These plans will vary in terms of the monthly payment required, the amount of minutes allotted each month, the per-minute charge for additional minutes used, and a variety of other factors. The customer will then decide whether to accept the Customer Agreement and be bound to it for the minimum term agreed upon, usually one or two years.
Prepaid Versus a Yearly plan - Frequently Asked Questions
What happens to any unused minutes each month?
Prepaid: As long as more minutes are purchased and added to the phone by the next due date, any unused minutes will be carried over and remain on the phone.
Yearly: Any unused minutes will usually be lost (except for certain plans that allow the minutes to roll over into the next month).
Will my plan include free calling on nights and weekends?
Prepaid: All of your minutes are considered anytime minutes, and you will usually be charged the same rate per minute (whether it be day or night, weekend or weekday).
Yearly: Most yearly plans include unlimited free calling on nights and/or weekends - with nights often being considered as between 9:01 p.m. and 6:59 a.m.
Will there be fees to activate the phone or to terminate the plan?
Prepaid: There is no fee to activate the phone. Since a yearly contract was not signed, there is also no fee to terminate the plan. You simply just stop buying minutes for your phone. If your phone has been deactivated and you desire to use it again, there is usually no fee to reactivate the phone.
Yearly: There is an activation fee often ranging between $20 - $35 (although this fee may be waived if a special promotion is being offered). An early termination fee will be charged if you cancel out of the plan before the one or two year term is up. This fee can be $175 or more.