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Prepaid Competition Heats Up With Page Plus Unlimited Plan

By Joseph Palenchar -- TWICE, 8/7/2009

Holland, Ohio - Nationwide prepaid provider Page Plus Cellular launched a $39.95/month unlimited-use plan that includes unlimited voice and text messaging and 20MB of data for phone-based Web browsing, email and over-the-air application downloads.

The company called it the "lowest-priced plan of its kind in the prepaid wireless market." Page Plus previously offered an Unlimited 24/7 plan at either $2.49 or $1.99 per day with $20 activation

The announcement follows the launch by Leap Wireless, MetroPCS and TracFone Wireless of sweetened unlimited-use plans. One of Leap's new plans, in effect Aug. 4, is a $40/month Cricket-branded plan that adds unlimited Web access and unlimited 411 to a plan that already offered unlimited voice, long distance, domestic and international text, and picture messaging.

Recently, Tracfone Wireless launched its Straight Talk service, a $45 prepaid flat-rate calling and text-messaging plan. For its part, MetroPCS added to its $40 and $45/month unlimited-use plans, offering a $40 plan that includes unlimited talk, text and Web access. A $45 plan added email, navigation and social-networking applications. To its $30 and $35 local-calling-only unlimited plans, MetroPCS added caller ID and call waiting.

Earlier this year, Sprint Nextel's Boost division launched a $50 unlimited plan that includes unlimited talk, messaging, Web and walkie-talkie service.

Prepaid cellphone service costs anywhere from 50 percent to 75 percent less than postpaid service, PagePlus said. Because of the down economy, some analysts predict prepaid revenue growth of 14 percent this year compared to 4 percent for postpaid service.

PagePlus sells through its Web site and indirect retailers, including Circle K stores.

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