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Chains dial into cell phone biz - What's Hot - prepaid mobile phones - Brief Article

Last year, AT&T Wireless turned away 4 million customers looking for cellular service who did not meet the company's credit threshold.

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News & Top Stories

Prepaid phones pay off on both ends of deal
WASHINGTON · Two years ago, Brittney Brooks, 17, would never have considered carrying a prepaid cellular phone , which shouted its cheapo status through bulky, unattractive handsets.

Wireless Toyz Offers a Variety of Brands, Plans and Models of Cellphones
Aug. 11--Looking for a cellular phone to replace the one she recently lost, Amy Enright walked into Wireless Toyz in Orangevale this week and pondered the scores of phones displayed on a curving counter that dominates the store's interior.

Prepaid Cellphone Plans
In the shadow of the major carriers, more than two dozen mobile ventures are focusing on the one in three Americans who lack traditional wireless service, including the credit-challenged, teenagers and those who want a cellphone for limited use.

To day, winning those customers back means offering services like pre-paid mobile phones. Prepaid phone cards, which users buy to add minutes to pay-as-you-go plans, are appearing on end-of-aisle displays at a growing number of drug stores.

Consumers with a patchy credit history, no credit or those who simply do not want to commit to a long-term annual contract, are buying. Enter prepaid mobile phones like AT&T's Free-2-Go, Cingular's Keep in Contact and T-Mobile's EasySpeak. Virgin Mobile is targeting its pay-as-you-go service to "hipsters, slackers and many people in between" by selling the perfect cellular relationship: no contracts, no monthly bills and no hidden fees. The company also has tie-ins with VH1 and MTV.

To gain a foothold in the growing pre-paid turf war, some providers are offering rebates on pre-paid phones as an extra incentive. Carrying the pre-paid mobile phones is a logical next step for drug stores. Some chains, including CVS and Rite Aid, have already begun offering prepaid phones in select stores. Rite Aid's circular for the week of Nov. 30 to Dec. 6 featured the Virgin Mobile K-7 pre-paid cell phone for $.
 
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