Because T-Mobile uses SIM card technology in both its prepaid and contract cell phones, T-Mobile users can easily change phones by swapping their SIM card from phone to phone. This is a prevalent request in the prepaid market, according to Cory Bukkila, an Electronics Team Lead for the Eden Prairie, Minn., Target. Bukkila noted that prepaid phones are fairly inexpensive-typically selling for between $20 and $100-but because of that price tag, they lack some options that are included in the more expensive contract phones.
Function
A SIM card is a small storage device that fits into the back of a cell phone. The card is needed to activate some makes of phones and stores personal information including contact information, text messages, caller ID information and other data. WiseGeek.com says to think of a SIM card as a "mini hard disk" for a cell phone. A prepaid SIM card will also store all of that information, but it’s also responsible for keeping track of how many minutes or dollars are left on a prepaid user’s account.
Benefits
The benefit of using a T-Mobile prepaid SIM card is that it can be placed into any T-Mobile phone and transfer data-including account balance, phone numbers and caller ID information-from phone to phone. This allows prepaid customers to upgrade or replace phones without the hassle of contacting all of their friends and family with a new phone number.
Reasons
The most common reason that people want to put their existing SIM card into a different phone is that the phone is old, broken, unwanted or some combination of the three, according to Bukkila. T-Mobile customers with a contract are eligible for cheap or sometimes free phone upgrades if they extend their contract. Prepaid customers, however, are not given the same option. According to Bukkila, the prepaid phones are often cheaper, more disposable models that lack a lot of high-end features, therefore prepaid users often come in more often looking for a different phone.
Challenges
Most retail stores-including Target-that sell contract cell phones are not allowed by T-Mobile to sell contract phones to a prepaid customer because T-Mobile discounts the phones as a way to entice customers into a contract, says Bukkila. He adds that retailers that don’t sell contracts and online sites like E-bay are the best options for getting a high-end phone to use with a prepaid SIM card. The price tag, he adds, will be higher, however, because there will not be a subsidy by T-Mobile.
Misconceptions
According to Bukkila, one common mistake made by consumers is their assumption that any phone that operates with a SIM card will work with any SIM card. This, however, is not the case. Cell phone carriers often "lock" their phones to their specific wireless network. Doing this helps ensure that only their SIM cards can be used with their cell phones. For example, adds Bukkila, a T-Mobile prepaid card will not work with an ATT phone, which also operates on a SIM card.
Tags: prepaid card, cell phones, Bukkila T-Mobile, card will, card will work, cell phone, contract cell
