Prepaid vs. mobile phone subscription: What do I really need?
Compared to other countries, Switzerland is one of the most expensive countries when it comes to mobile phone subscriptions and prepaid – so the decision needs to be carefully considered, because you often commit yourself to a provider for several years.
Here we present the advantages and disadvantages of mobile phone subscriptions and prepaid tariffs and which is more suitable for whom.
What are the advantages of mobile phone plans?
More cost-efficient thanks to flat rates
Mobile phone subscriptions are cheaper over the term than prepaid options. Even the cheapest plans now include a telephone flat rate to all Swiss networks. More and more subscriptions also include a data flat rate, which allows unlimited data volume – at least in Switzerland.
Roaming options often included
Roaming is included in most mobile phone subscriptions. Due to longer term contracts, providers can grant discounts on roaming and therefore offer better prices. Subscriptions with roaming options are available from CHF 20 per month.
Tip: The roaming limit can be flexibly selected with many providers. The alao support team can advise you on this.
Comfortable
With a phone plan, you don’t have to worry about your SIM credit, because you know what the costs will be each month. You also don’t have to worry about the call being cut off in the middle of the conversation due to lack of credit.
Smartphone payment in instalments
Not everyone has the money to buy a smartphone outright, especially since the top models often demand four-digit sums. Providers also offer top smartphones with mobile phone subscriptions, which you pay for in instalments together with your subscription.
More extras
Those who take out mobile phone subscriptions can enjoy several extras, such as free roaming, second cards, discounted prices to partners and more.
Tip: Subscriptions taken out via alao usually include an extra shopping voucher and no activation fee is due.
What are the disadvantages of mobile phone subscriptions?
Longer contract terms
In return for the comparatively lower prices, however, you are sometimes tied to your provider for between 12 and 24 months. “Cheap” is relative here: if you opt for the non-plus-ultra subscription, you are tied to this price for the entire term. Compared to prepaid rates, however, you still save a lot of money as a frequent user. If you are looking for a mobile phone plan but don’t want long contract terms, you should look at the smaller providers such as Yallo and Wingo.
Less flexibility
Long terms mean less flexibility if your circumstances change, for example if you move house, become unemployed or move in with someone. It is very difficult to cancel the contract before the end of the term – you are bound to the monthly basic price.
Credit check
For many people, the question of their own creditworthiness does not arise. Nevertheless, there are people with a poor credit rating, for example due to previous insolvency proceedings, debts or a poor payment record. Whether self-inflicted or not: If you have a bad credit rating, it will be much more difficult to take out a mobile phone subscription. Sometimes all it takes is a mistake in the database of the scoring/creditworthiness company to prevent you from taking out a subscription. And with a bad credit rating, it is especially difficult to take out a subscription with a new mobile phone.
What are the advantages of prepaid tariffs?
More flexibility
Prepaid tariffs allow flexibility. You do not enter into a contract with a minimum term, but can cancel at any time – simply by not topping up your credit. You also don’t have to pay any penalties if you don’t pay your bill on time.
Cheaper for some users
People who only use their mobile phones a little and do not need roaming usually do not need flat rates. However, they still pay for these and the basic fee each month in the subscription. Few users should check whether it is not more profitable to pay the telephone and SMS charges instead of paying for an unused flat rate. Thanks to free messengers, internet telephony via WhatsApp, Facetime and co. and open Wifi networks at stations, in trains and shops, you are less and less dependent on the networks of the mobile phone providers.
No credit check
If you suffer from a bad credit rating, you are better off with prepaid plans. Since the risk of non-payment is low for the provider, you are more likely to get a prepaid tariff.
No monthly bills
Because the credit is topped up in advance, you don’t have to worry about monthly bills. If you’re short of money one month, it’s easier to take a month off and not top up your credit. This is not possible with a mobile phone subscription.
Cost control
Unlike mobile phone plans without roaming, you can’t get caught in a cost trap and be faced with an extremely high bill at the end of the month just because you crossed the border. Roaming is only possible as long as you have credit on the card. Some providers even block roaming altogether for prepaid customers or offer extra roaming options.
What are the disadvantages of prepaid tariffs?
Higher costs for medium to frequent users
While mobile phone subscription owners can usually make calls free of charge, owners of prepaid tariffs have to pay dearly for every minute they call. The same applies to text messages and data volume. However, more and more providers are also offering flat rates in prepaid offers.
Roaming often not included or very expensive
Since prepaid users only pay for what they use, providers have to make different calculations. That is why providers do not offer any discounts on roaming. Therefore, if you live near the border or spend a lot of time abroad, you are out of luck without roaming.
Credit management
You must also ensure that you have enough credit on your card at all times so that you can make calls, send text messages or surf the internet. However, providers offer automatic top-ups, but you should make sure that there is a cost lock.
Top smartphones often not available
Prepaid tariffs do not usually come with subsidised or free mobile phones. However, some providers offer very cheap mobile phones.
| Advantages | Disadvantages | |
| Mobile phone subscription | + Cost efficiency thanks to flat rates, especially for roaming+ More convenient because costs remain the same+ Payment by instalments + More extras such as second cards, cheaper data passes, roaming packages | – As a rule, longer subscription periods; early termination not possible, or only possible with great difficulty. – Inflexibility when life circumstances change– credit check– Roaming trap for subscriptions without roaming |
| Prepaid | + More flexibility: Can be cancelled at any time+ For few users possibly cheaper+ No credit check+ No monthly bills+ Cost control | – Higher costs for frequent users– Balance management– No subsidised mobile phones |
For whom are mobile phone plans more suitable?
The answer is simple: medium and frequent smartphone users. If you make a moderate to large number of calls, send text messages and surf a lot. If you spend a lot of time abroad or are often close to the border, we also recommend a mobile phone subscription. Our support team will give you independent advice on the individual providers and can help you find the best phone plan for you.
Free and independent subscription advice:
043 588 23 23
Mondays – Fridays 08:00 – 20:00
Saturdays – Sundays 09:00 – 17:00
Who are prepaid plans suitable for?
The question of who prepaid is suitable for is somewhat more complicated. Prepaid plans are good if the users are not yet familiar with mobile phones and are mainly to be reached. These are primarily children and senior citizens. They also do not need the latest smartphone. Prepaid tariffs are also suitable as a second card.
People in the home office should also take a look at prepaid tariffs. By using free messengers, public networks and internet telephony, many cost traps can be avoided.
Conclusion: It depends on your circumstances
Both prepaid and subscription plans have advantages and disadvantages. Mobile phone subscriptions score with low prices and extras, while prepaid plans are cheaper and more flexible, especially for infrequent users. Ultimately, it depends on your needs and preferences whether you should take out a subscription or use prepaid tariffs.
Tip: Whether you want to switch from a prepaid tariff to a subscription or an existing subscription, you can do so easily on alao.ch. Our subscription finder shows you the best subscriptions from the most popular providers at a glance. You are guaranteed to conclude your new subscription at the best conditions in 5 minutes online. We’ll take your old phone number with us and, if necessary, cancel your old contract. If you have any questions or problems with your provider, we are always available free of charge – before and after you sign up. This article was created on 18 September 2023 and updated on 14 December 2024.
