One in Five Wireless Contract Cosumer to Switch to Prepaid

It appears that the decline in consumers committing to wireless contracts is still continuing. A study conducted by Infogroup for the New Millennium Research Council indicates that 20 percent of wireless customers (estimated to be about 24.6 million adults in the U.S.) will move to "less expensive unlimited prepaid wireless service with no early-cancellation penalty" at some point within the next six months.

Last year's study estimated the number at almost twenty percent.

The reasons for abandoning mobile phone contract offers? Well, its about cost. Most prepaid plans are cheaper than contract offerings.

Interestingly, 10 percent of respondents said they would switch to a prepaid plan if they weren't "subject to an early-cancellation penalty." his indicates that the infamous early termination fee or ETF for mobile phone contracts are successful in encouraging consumers to be faithful to their agreements.

So what can carriers do to keep their customers from switching to prepaid deals? Well, the study shows that unlimited talk, text, and Web or e-mail access for $50 a month with no penalty will do the trick.

Will this trend continue next year? Stay tuned as we bring you the latest news and updates on wireless contracts and related topics.