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AT&T tries to defend why it shouldn't let you unlock your phone sooner
(www.androidauthority.com)
this post was submitted on 17 Oct 2024
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Why is prepaid service cheaper? I never understood why plans cost more. You would thing it would be the opposite.
Some reasons:
In short, you get a bit more hassle w/ prepaid, but you get a lot of savings. I pay <$10/month for my service (1GB data, unlimited text, 300 minutes call), and I could get unlimited everything for $25-30 (depending on prepaid carrier). I bought my phone for <$400, whereas cost is less of a concern for big carriers since they often offer financing issues. I hate monthly payments, so I prefer to buy devices in cash and keep my monthly service payments low.
Plus the bills are paid up front. No collections department, or write-offs. Plus you get to earn interest if the customer pre pays multiple months or a year in advance.
Because prepaid customers get lower priority on the tower. If I'm in even a moderately crowded area, my connection speeds go to shit and nothing loads.
Money up front vs people just not paying the bill at the end of the month.