As the name suggests, "Pay as you go mobile phones" are prepaid mobile phones, wherein users buy a mobile phone handset, usually pre-loaded with some amount of credit and purchase extra credit as and when required. Users need to have the required amount of credit to make a call.

The concept originated in the early 1990s in the Republic of Ireland. It helped users under the age of 18 to obtain and use a mobile phone handset. Most of the times, these young users of mobile phones did not have any proof of identity or bank accounts, which came in the way of their acquiring mobile phones.

In this system of pay as you go, the costs of making calls are often quite high. Mobile phone networks have to pay service charges and VAT on phone calls. Therefore, most networks charge more for the credit than the amount that the customer or mobile phone user gets back in the form of call value. Despite this fact, the pay as you go cell phones have been received well by diverse sections of mobile phone users. As of now, most mobile phone networks in Europe support the concept of pay as you go phones.

There is no doubting the fact that making calls or sending SMS messages using payG phones is, in general, more costly than doing the same using contract mobile phones. However, sometimes, users also get more call credit than the amount they have actually paid to the network operator.

Mobile Phone Shop UK

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About the Author

The author is a business writer specializing in mobile phone and credit products and has written authoritative articles on the mobile industry. He has done his masters in Business Administration and is currently assisting 3mobileshop as a mobile specialist.

For more information please visit: http://www.3mobileshop.co.uk