How Is AT&T's New $60 Prepaid Unlimited Plan A Good Idea?

AT&T put a press release out today about a new plan they’re introducing on Monday, billed as a $60/month unlimited voice and text prepaid plan. While this plan is more competitive with smaller, prepaid-only carriers such as Boost Mobile, it’s also significantly cheaper than similar regular plan options. So what are they thinking?

Writing to us about the new plan, reader Sean mused:

What I can’t understand is why they would offer it? GoPhones are the prepaid option for people who can’t pass a credit check or don’t use too many minutes. Usually they are a worse option than normal contracts as far as the price per minute. Here is my problem with it though. If you want to do this same thing under contract, it would cost you $100/month ($40 price difference/month or $960 over the life of a contract assuming that you used your phone every day). I’m hard pressed to find a catch, but as I’ve learned from the consumerist, there always is at least one. My question is why would anyone not want to take advantage of this option?

It’s hard to say, since the details of this plan and any possible catches won’t be out until Monday.

It could be that AT&T is going after a text-crazed teen/young adult market who are uninterested in smartphones and mobile internet. Those customers won’t be interested in long contracts to subsidize expensive phone purchases.

Any other ideas? If you’re using a basic prepaid plan, would you consider switching?

Let Freedom Ring with New GoPhone Unlimited Talk and Text Feature Package [Press Release]

(Photo: epicharmus)