More cellphone users switch to prepaid plans

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Millions of American cellphone users fed up with soaring bills are flocking to prepaid plans.

Long a lifeline for low-income consumers and people with bad credit, these phones have become one of the hottest performers in the U.S. wireless market. Total U.S. prepaid subscriptions shot past 100 million as of June, growing by 12% over the previous year, while traditional wireless telephone services with monthly bills remained flat. About 1 in 3 U.S. cellphone owners now opt to pay as they go. Prepaid service has come into its own because of a trio of customer-friendly factors: The cost sometimes is less than half that of a traditional billed service; there's no restrictive contract or hefty early-cancellation fee; and some high-end providers offer smartphones with unlimited Internet, text and roaming capabilities that weren't available previously.


More cellphone users switch to prepaid plans