Ask HN: Why is prepaid mobile second class in the US?
And why do they have separate websites for support and payments? I BYOD for about 10 years now, and no matter what network I'm on the website is different, the support is different and some networks, like Verizon don't support visual voicemail. It's the same network for post paid subscribers why does it have to be a completely different system?
4 comments
Originally, mobile phone services were only available post-pay for individuals who could pass a credit check, and were structured as per-minute or per-text plans where someone would be billed after the fact.
Pre-paid plans, when they came out, were marketed primarily to individuals who couldn't pass a credit check to go on the flexible, post-paid plans. This is why they were second class, pre-paid was like having to go to a check cashing place as opposed to having a checking account.
Suddenly, in the mid-aughts, that changed. Expensive, "hot" phones came out, like the Motorola RAZR or later the iPhone, and the marketing for post-paid plans were that you would get a free phone if you signed a contract. All of a sudden, the flexible option was now primarily a financing option for getting an expensive phone.
Meanwhile, post-paid services like Virgin Mobile became a bit more upscale, offering reasonable mid-range phones and decent pre-paid options. Still, a large number of people kept using post-paid plans to do monthly financing on expensive phones. "Unlimited" plans started to make pre-paid convenient.
The contracts, financing options and "family plans" have all been so profitable for post-paid carriers that they've basically done everything possible to give the impression of being the "first class" option - visual voicemail, 5G access, less throttling, etc. These have trickled down to some pre-paid carriers - Mint, Cricket and Visible generally offer all of the frills of the post-paid ones these days - but there is still the perception of them being "for people who can't pass a credit check".
Edit: often, if a carrier offered both pre-pay and post-pay, the post-pay options were designed as second-class citizens on the carrier's network (ie, throttled, or with different payment plans) for the reasons above, and as such operate substantially differently than post-paid both on the network and in terms of support.
I can easily pass any credit check, but I use a nice, high-end used phone and a yearly Mint plan and pay a third of what virtually everyone else I know pays while missing out on absolutely nothing. Suckers.
Pre-paid plans, when they came out, were marketed primarily to individuals who couldn't pass a credit check to go on the flexible, post-paid plans. This is why they were second class, pre-paid was like having to go to a check cashing place as opposed to having a checking account.
Suddenly, in the mid-aughts, that changed. Expensive, "hot" phones came out, like the Motorola RAZR or later the iPhone, and the marketing for post-paid plans were that you would get a free phone if you signed a contract. All of a sudden, the flexible option was now primarily a financing option for getting an expensive phone.
Meanwhile, post-paid services like Virgin Mobile became a bit more upscale, offering reasonable mid-range phones and decent pre-paid options. Still, a large number of people kept using post-paid plans to do monthly financing on expensive phones. "Unlimited" plans started to make pre-paid convenient.
The contracts, financing options and "family plans" have all been so profitable for post-paid carriers that they've basically done everything possible to give the impression of being the "first class" option - visual voicemail, 5G access, less throttling, etc. These have trickled down to some pre-paid carriers - Mint, Cricket and Visible generally offer all of the frills of the post-paid ones these days - but there is still the perception of them being "for people who can't pass a credit check".
Edit: often, if a carrier offered both pre-pay and post-pay, the post-pay options were designed as second-class citizens on the carrier's network (ie, throttled, or with different payment plans) for the reasons above, and as such operate substantially differently than post-paid both on the network and in terms of support.
I can easily pass any credit check, but I use a nice, high-end used phone and a yearly Mint plan and pay a third of what virtually everyone else I know pays while missing out on absolutely nothing. Suckers.
Websites, support, and product features differ because of market competition. Prepaid carriers resell bandwidth purchased in bulk from the major carriers, so they have far lower barriers to enter the cellular market.
Counterexamples: Google Fi and Mint Mobile, both of which have good websites/apps, service, and product features. Verizon in particular sucks even for subscribers so I wouldn't expect their prepaid service to shine.
Counterexamples: Google Fi and Mint Mobile, both of which have good websites/apps, service, and product features. Verizon in particular sucks even for subscribers so I wouldn't expect their prepaid service to shine.
US Mobile is really great pre-paid plans on Verizon and T-Mobile. If they had a wearables plan I'd move all my phones over in a second.
I have this same question! Outside of the US, it just makes sense. I always assumed it had to do with the whole system there. But seriously interested in the comments here...