The comparison tables and notes for different wireless plans offered in Canada. U.S. plan comparisons? See the FAQ regarding this commonly-asked question.
Pre-paid plans require the purchase of cards with a certain amount of credit value (typically $10, $25, $50, etc). A secret number is located inside the card which is entered into your account and your phone is credited with that amount. Once the card is used up or expires then you purchase another card and 'refill' your account. Pre-paid plans usually offer cheaper cell phones than post-paid plans and are primarily targeted for casual users, teens, and others that do not want to maintain a monthly account with a service provider. Advantages include a cheaper monthly cellular cost (if you only use the phone on a casual basis), no contract, and the restriction that you cannot rack up a huge cellular bill if you cannot buy new cards. Disadvantages include the requirement to purchase refill cards, higher airtime rates, the lack of extras (e.g., voice mail, conference calling, etc), and possibility a limitation on where the phone can be used. Gas stations, convenience stores, drug stores, and department stores often sell the pre-paid cards, so obtaining a new card is usually not a problem (you may also refill your account online, at select ABM machines or even with a credit card with some providers).
Post-paid or monthly plans are typically more expensive than pre-paid plans and often require a contract period of 1-3 years. Each month you are billed your monthly airtime rate, a system licensing charge (usually around $6-7), a 911 charge (usually $0.50), and other charges for extra services (e.g., call display, voice mail, etc). Advantages include a cheaper per minute rate, usually nicer phones than pre-paid, roaming, and included extras. Disadvantages include a higher monthly rate, a contract, and a monthly bill.
You can switch between plan types with most providers, but there are often service fees if you decide to do this. If you use an average of less than about 30-50 minutes per month then pre-paid is likely more economical, but more restricted. If you are constantly using more than 50 minutes on a pre-paid plan then it is usually cheaper to migrate to a post-paid plan.
