As somebody who is not a heavy phone user I only recently switched from using prepaid to contract. I think there's a few reasons that contracts are popular. Co

As somebody who is not a heavy phone user I only recently switched from using prepaid to contract. I think there's a few reasons that contracts are popular. Cost, a new Iphone 4S is ~£400, with a contract you effectively get it for £40 up front. Sure, over the life of the 2 year contract it might work out cheaper to buy it up front but not everybody has £400 up front and they really have their heart set on the iphone. It's basically another form of "buy now , pay later". Convenience , a monthly paid phone will always work as long as you remember to pay the bill. My days on prepaid phones were a hassle as I remember needing to make calls and having no credit, or being cut off in the middle of a call due to running out of credit. Having to wrestle with the automated payment line in order to make an important call is a real pain. Culture, There is a perception (in the UK at least) that prepaid phones are for children and drug dealers while serious grown ups will have a monthly contract. I know a few women who would consider a guy who uses a prepaid phone as a "bad sign" if out on a date for example.