Question

Why do cell phones service providing firms often charge higher prices to pre paid clients than those on contract

Answer 1

Answer:

There may be exceptions, but on average, prepaid phone plans are almost always cheaper than their contract equivalent. Plus, many prepaid plans don't charge an activation fee, so you don't have to worry about an expensive first month.

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Answer 2

Answer:

With pre-paid, calls are usually more expensive as there's no monthly rental and you won't get an itemized bill showing the calls you have made. You do not risk running up a large bill that you might find difficult to pay.

Explanation:

With prepaid, you know exactly where your money goes, but once that money is gone, it's gone. With contracts, there are many more included benefits, which range from free minutes and data to SMS bundles and free gifts. You could also receive special offers when you upgrade.

With prepaid plans, you pay in advance each month for your talk, text and data. Standard cellular plans at the Big Four carriers — known as postpaid plans — tally up your costs at the end of each billing cycle and charge you then.

Prepaid cell phone plans tend to be cheaper, but they usually come with fewer perks and features. Postpaid cell phone plans almost always cost more, but they often come with discounts on new devices and other benefits, like more reliable data speeds.

Why do cell phones service providing firms often charge higher prices to pre paid clients than those on contract

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