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  • STRANGE BUSINESS MODEL

    Filed at 10:31 am under by dcobranchi

    I have an Alltel prepaid cellphone. The phone is 3 years old and has pretty much seen better days, so I decided to buy a new phone. This weekend they’re running a promotion in which they’ll waive the activation fee. Perfect timing. So I tried to order a phone to replace my dying one. No can do. They’ll sell me a phone for $175 and let me keep my number. Or I can get a new number and get the same phone for $25. Now, this is a pre-paid account. There is no contract. So why is it more profitable for them to set up a brand new account with a new cellphone number than to let me keep my old account and old number?

    13 Responses to “STRANGE BUSINESS MODEL”


    Comment by
    Karen
    November 30th, 2008
    at 11:30 am

    I’ve used Virgin Mobile prepaid for 6 years now. When I want a new phone, I buy the phone, go online and make the transfer. Within half an hour, I’m using my new phone. Very easy.

    As long as I stay up to date, all of my money goes to airtime. Set to auto top-up when I hit $5 or 90 days, my minimum is $15. If I don’t burn airtime, my yearly cost is slightly over $60.

    The most expensive phone I’ve seen from VM about $100. The cheapest phones work just fine – I paid $10 for the kids and made it back with airtime at sign up.


    Comment by
    Daryl Cobranchi
    November 30th, 2008
    at 12:21 pm

    I bought my first phone at Walmart. That was before Alltel took over the system. Walmart still sells phones but the selection is rather pitiful. The one I ended up ordering from Alltel was $0.99 with no contract. Minimum airtime purchase is $10 (67 minutes) every two months. I use my phone for work, so $10 rarely lasts longer than a month. I have it set to autofill once a month.

    For someone who doesn’t need hundreds of minutes a month, prepaid is the way to go. A side benefit is that the kids can’t run up a bill. Friends with regular plans have been shocked with $300 phone bills.


    Comment by
    Alasandra
    November 30th, 2008
    at 12:42 pm

    Tell me about it ………the eldest son who thought texting was stupid when we got our plan racked up $54. in text. We added unlimited texting to our plan for $30

    Since we only have cell phones we went with unlimited minutes and 4 phones. Now we have unlimited texting too.


    Comment by
    Daryl Cobranchi
    November 30th, 2008
    at 1:07 pm

    How much does an unlimited plan w/ 4 phones run? Alltel would run $400/month. That’s a bit more than I’d like to spend. 🙂


    Comment by
    Daryl Cobranchi
    November 30th, 2008
    at 1:10 pm

    And Verizon Wireless is $510!


    Comment by
    JJ Ross
    November 30th, 2008
    at 2:43 pm

    We have three phones with almost unlimited (more than we can use) on one Sprint family plan. About $100 per month. The fourth phone would be another $15 per mo. —

    Of the three only Favorite Daughter has texting, email, photos and internet access though.


    Comment by
    COD
    November 30th, 2008
    at 3:51 pm

    That sounds illegal. They can’t hold you hostage over the phone number since the phone number portability act. Transfer it to Virgin Mobile. My bill averages about $15 a month.


    Comment by
    don
    December 2nd, 2008
    at 12:49 am

    I’ve been using Virgin Mobile prepaid for over a year now. I’m not a really heavy phone user, so my cost averages about $10/month, and the phone I have was only $15. Everything I’ve needed to do to activate or change my account can be done online without hassling with real, live people.


    Comment by
    Daryl Cobranchi
    December 2nd, 2008
    at 1:04 am

    I like dealing with CS at Alltel. The last time I called them, the 20-something CSR was seriously flirting with me. Did my 46-year-old heart some good. 🙂


    Comment by
    sam
    December 2nd, 2008
    at 2:20 pm

    Flirting with you? Must not have seen you in that hat!


    Comment by
    Daryl Cobranchi
    December 2nd, 2008
    at 3:32 pm

    I sound much better looking than I look. 🙂


    Comment by
    Karen
    December 2nd, 2008
    at 6:21 pm

    What’s wrong with the hat? He’s just not your type Sam.


    Comment by
    StarGirl
    December 3rd, 2008
    at 8:50 am

    Verizon here. $70/mo for mom, plus $10 each for two kids (boys), plus $5 for texting for one of those kids. Not unlimited, but a lot of minutes for all (700?), plus a lot of texts for the college kid (250?). Good signal everywhere. We get some kind of deal through hubby’s company – I think these are common and I bet your co has one too.

    If you have girls, of course, all bets are off.