The real reasons more people don’t switch to prepaid service over the big three carriers

It’s 2025, and more people are finally getting on board with prepaid, largely because of ever-increasing prices and broken promises from the Big Three carriers. Still, I’m sure we all know a few holdouts, or you might be one yourself. A little over a year ago, I argued that prepaid was a better option for many people, and that reluctance to switch was driven by persistent myths. Many of those points still hold, but awareness has improved, and so has prepaid market penetration.

When you remove some of the most common myths from the equation, what are the real reasons people still don’t switch to prepaid? I dug into the most common ones I hear from friends, family, and online communities. Here are the biggest reasons some people say prepaid isn’t worth the switch. We also look a bit deeper at how valid these reasons are in reality.

Confusion over the abundance of choice is probably one of the most common concerns I’ve heard. These days, there are literally dozens of prepaid options, and they’re not all created equal. While only a handful are reasonably well known thanks to advertising and word of mouth, the sheer number of choices can make it hard to know where to begin.

The problem has only grown as the Big Three networks have made it easier to spin up MVNOs through programs like “T-Mobile’s Your Brand, Our Wireless” program, which makes it easier than ever to turn your brand into a wireless provider. As a result of these changes, we’ve seen a flood of celebrity-endorsed brands, plus mobile services bundled into fintech apps like Klarna.

It can feel overwhelming, but the solution is simple: stick with reputable providers that fit your exact needs. I recently published a guide on what to look for when evaluating lesser-known prepaid carriers, which can definitely help here. You’ll also want to check out our breakdowns of the best Verizon, AT&T, and T-Mobile alternatives. You should also check out our guides on the best Verizon, AT&T, and T-Mobile alternatives for a list of highly recommend options.

If overwhelm isn’t your main concern, there’s a chance you worry that the service quality just won’t be as good. The major carriers have done a good job convincing people that only postpaid customers get the best service. There’s some truth to that, but it isn’t always so clear-cut.

Network speed and priority depend on several factors, including congestion, tower performance, and even the servers used. One of the biggest indicators of service is the Quality of Service Class Identifier (QCI). Carriers use QCI tiers to prioritize traffic, and many prepaid carriers do have lower-priority tiers. That said, some prepaid options now offer higher QCI priority levels that, at least on paper, are the same as postpaid.

What does this mean in practice? During congestion, the lower priority tiers will typically have worse speeds and latency over higher priority lines. Does this mean that a prepaid carrier on the same QCI as postpaid will actually see the same level of service? That’s where things get a bit more complicated. Roaming agreements, server locations, and other factors also play a role, and so while two services on the same priority should, in theory, receive similar service quality, the reality doesn’t always match completely.

For example, I’ve run several prepaid carriers that are supposedly at the same high tier as Verizon, including Visible. In most situations, the speeds and pings are nearly identical when the tests are run around the same time, but that’s not always true. I’ve had times when my Visible Plus service has been inexplicably slower than my postpaid Verizon service.

The bigger takeaway is that I’ve never had the gap be big enough to matter on a high-priority prepaid service. I’ve had Visible test lower, but it’s usually only 10-20% slower in these situations at worst. Those with a lower-tier service like Mint Mobile won’t be able to say the same, unless they happen to live in an area with relatively low congestion. I’ve certainly had times where lower-priority plans can barely eek out more than 1-3Mbps per second, while my postpaid service in the same area is easily 50Mbps or higher.

If you’re looking for high-priority service with great pricing and excellent features, I highly recommend checking out Google Fi, Visible, or Total Wireless.

Many people still hold older, grandfathered postpaid plans that are cheaper or more stable than current postpaid offerings. The fear is that once you leave, you can’t go back, making prepaid feel like a gamble. This is certainly understandable.

The good news is you don’t have to risk everything right away. Instead, try a prepaid service alongside your current plan. If you have an eSIM slot, you can test a new number on the same phone without touching your main line. If the new carrier works for you, you can then transfer your original number over. You might have to pay for a month of prepaid service on top of your postpaid coverage, but at least this way you know it works well and you aren’t taking an unnecessary risk.

I know a lot of people who tell me they stick to postpaid because of free phone promotions or financing offers. I get that it’s convenient, but it’s also important to be aware that you’re almost always going to spend more this way.

Another sticking point is phone promotions and financing. Most customers really believe they are getting a better deal by sticking to a big carrier’s financing program or by taking advantage of a free phone promotion. The truth is that while postpaid carriers push “free phone” deals like this, these promos almost always end up costing you more in the long run due to higher plan pricing. We even crunched the numbers on how free the “free” phone offers are from big carriers for those interested in a closer look.

The good news is prepaid isn’t as limited as people think. Many carriers partner with services like Affirm to offer financing, and providers like Metro by T-Mobile or Cricket often run deals on budget and mid-range phones that can make them absolutely free. Google Fi sometimes even offers free flagship phones, like the Pixel 10, for new customers.

Even without “free” deals, pairing prepaid with 0% financing from places like Best Buy or directly from a prepaid carrier can still be far cheaper than sticking with postpaid.

Finally, there’s the perception that prepaid is “cheap” or less prestigious. In today’s culture, where phones are tied to identity, some people don’t want to risk looking budget-conscious. My advice: don’t build your self-worth on a carrier logo. Most people won’t know, and even fewer will care, unless you tell them outright.

Switching can save you money, but it’s not for everyone

For many, prepaid is a smart move that saves money without major sacrifices. But it’s not one-size-fits-all. If you value convenience and don’t mind paying more, there’s no shame in staying on postpaid. Just be realistic in understanding that postpaid isn’t automatically a better deal in 2025. And in most cases, it’s going to be a much worse value.

Are there other reasons you’ve heard for avoiding prepaid? Or maybe one of your own? Share them in the comments, as I’d love to hear your thoughts.