Some advantages of prepaid phone plans include flexibility and freedom from long-term contracts. Customers who subscribe to prepaid phone plans also don't pay monthly bills, roaming charges or overage fees.
In terms of flexibility, prepaid phone plans allow phone users to talk or text as much as they want, as long as they have enough minutes or texts. Contract plans, on the other hand, often limit customers to a certain number or minutes or texts per month. Customers who subscribe to prepaid phone plans can also opt out of service without incurring charges for early termination, and they can change phones any time without being forced to extend their contracts. Since prepaid phone plans are on a pay-as-you-go rate, they are cost-saving for irregular phone users.