Prepaid Cell Phones, Anyone?

It is a fact that in the mobile phone industry today, there exists fierce, cutthroat competition among its players. The fight for the large share of the cell phone market is the goal of most major wireless service providers that they resort to all types of promotions such as generous freebies and give-aways, all of which are meant to attract more patronage.

In order to lure buyers and customers, mobile phone providers and manufacturers give out free cell phone ring tones, games, wall papers and other cell phone accessories. Now, even prepaid cell phones are being given away for free just to capture more buyers.

How do cellphone manufacturers make profit when they are actually giving away their units? The prepaid cell phones are free, yes, but then you have to buy prepaid cards or call minutes in order to make calls. And prepaid call cards have to be purchased from the manufacturers regularly. Therefore, profits are earned despite the free handsets.

There are other manufacturers who would not provide free prepaid cell phones, but instead as a come-on, they will sell dirt cheap prepaid cell phones. Still it can really be a bargain especially if you can get the unit for as low as 60 to 80 percent of its regular price.