I used to have the cheapest Verizon contract and it was costing me over $400 a year. When that ran out I went to their prepaid thing at $100 a year. I mostly talk to my wife and if I call her on her business (verizon) phone it doesn"t cost but even when I go over (I average having to add another $100 during the year) it still is less than half of the contract per year. Been doing it for about 4 years now and I like it. I guess it depends how often you make calls.