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While a prepaid cell phone offers many advantages, it also can present problems for its users. With increased interest in the prepaid market, prepaid phone rates have dropped and plans improved. Expiring minutes and service -- The minutes you buy for your prepaid cell phone may come with an expiration date of 30 or 90 days. Unexpected fees -- With a prepaid cell phone, you won't pay monthly taxes or termination fees as with traditional plans, but you may find other unexpected fees -- or higher fees than you'd expect for extra services. Limited features -- You probably won't find the latest, most sophisticated features on the average cheap prepaid cell phone. Untransferrable phone number -- If you switch to another phone carrier, you probably won't be able to transfer your prepaid phone number.
Next, let's take a closer look at prepaid cell phone plans and how to go about finding the right one for your needs.
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One of the biggest problems is the cost per minute, a serious disadvantage for anyone who talks a lot on a cell phone.
Prepaid provider Boost Mobile, for example, offers a flat-rate, monthly unlimited talk plan for $45 in some states. You may be charged a daily access fee of 99 cents to $2 for days you use the service or for every day. Worse yet, if you allow your prepaid cell phone to deactivate by not using it or buying minutes within the prescribed time, you'll probably be assigned a new number when you reactivate it. In Texas, a state senator has introduced a proposal that targets gang members and would bring cell phone users out into the open. The free phone deals are still rolling, which means that you my friend can get yourself a free phone with one month of talk time from Straight Talk with no commitment at all.

In most cases, however, per-minute rates still usually are lower with traditional contract plans [source: TMCNet]. You also may be charged for roaming, sending text messages or photos, downloading ring tones or games and accessing the Web [source: CNET]. If it becomes law, the proposal will require prepaid phone buyers to show a state ID and sellers to track the sales. You can find it there and see all the specs, pictures, and other information you’re going to want to know about this phone. Buying 60 minutes for $20, for example, might extend your service for another two months [source: Wireless Guide]. Virgin Mobile, for example, offers phones ranging from basic to those with mobile Web, camera with flash, audio and picture messaging, Bluetooth wireless and mobile instant messaging and e-mail. Cell phone manufacturers and carriers would need to retain phone records for use in criminal investigations [source: Business Week].

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