Prepaid Phone Plans: Everything You Need to Know About MVNOs

Prepaid phone plans are for more than just setting up a burner phone. Instead of getting locked into a contract and indefinitely paying for a phone you may never actually own, prepaid phone plans promise lower prices while delivering the same coverage and speed as the major networks like AT&T, T-Mobile, and Verizon. What’s not to love? Although prepaid phones sometimes get a bad rap, they make a lot of sense for some customers, particularly if you’re partial to buying unlocked phones and owning them outright. By cutting out contracts that stipulate several lines, financing on phones like the iPhone 17 that can climb well over $1,000, and extras you may not need, like mobile hot spot coverage, prepaid phone services end up much cheaper than major carriers without big performance losses. Still, they aren’t made equally. Most prepaid phone providers tap into an existing cellular network, but they have different limitations on how much access you have to that network. Here's everything you need to know. Check out our other mobile guides, including the Best iPhones, Best Android Phones, Best Cheap Phones, Best Samsung Phones, Best Motorola Phones, and Best Google Pixel Phones. What Are Mobile Virtual Network Operators? Photograph: Jacob Roach Prepaid phone plans used to be easy to sort out, but after decades of mergers and acquisitions, the lines have gotten a little messy. The best place to start is the difference between mobile virtual network operators (MVNOs) and mobile network operators (MNOs). MNOs own and operate a mobile network, and they include T-Mobile, AT&T, and Verizon. MVNOs use an existing network. For example, Cricket Wireless uses AT&T’s network, while Google Fi relies on T-Mobile. The lines between MNOs and MVNOs have blurred in recent years. Previously independent MVNOs like TracFone have been gobbled up by larger carriers (in this case, Verizon). Other brands used to operate mobile networks but now serve as MVNOs. A good example of that is MetroPCS, which merged with T-Mobile in 2012 and eventually became Metro by T-Mobile in 2018. With how intertwined MVNOs and MNOs are these days, it’s hard to separate them based purely on infrastructure. The more important distinction is whether your phone plan is prepaid or postpaid: With a prepaid plan, you pay for your data and time up front. With a postpaid plan, you’re billed for the data you’ve used after you’ve already used it. Beyond when you pay, there are a few other aspects that separate MVNOs from traditional MNOs: