GSM Phones and Prepaid SIM Cards
Scroll down to see the Pros and Cons of local prepaid SIM cards
A Local SIM Makes You A Customer of Local Phone Company
Using a GSM cell phone and prepaid SIM card from the local (overseas) phone company gives you the lowest possible international cell phone rates - local rates. There are no roaming charges or other surcharges because you become a customer of the local phone company in the country you are visiting and you pay the same rates as the people of that country pay.
Prepaid Cell Phone
More important than knowing the terms “GSM” and “SIM” is understanding that this is a prepaid or pay-as-you-go service. Monetary credit is added to the account by buying a scratch-off recharge voucher (widely available in stores displaying the cell phone company’s logo), and entering the code from the back of the scratch off voucher. Charges for outgoing calls are deducted from the available balance. These recharges vouchers are similar to store-bought gift cards or pre-paid calling cards sold in the U.S.
Use Multinational SIM for Roaming
Assume that with a single-country SIM (France, for example) the service will not work outside that country. While it might work at a higher rate, it will be hard or impossible to add more call credit, and there is the chance that the phone might not function at all. Use a prepaid SIM card designed for international roaming when traveling to multiple countries.
Interact with Local People, Language
To buy a recharge voucher, it will be necessary to conduct a transaction at a local store. It is also likely that the phone menu system will have to be navigated in the local language. Sometimes there are options to switch the menu to English, but not always. Usually it’s easy to add credit by pushing the numbers indicated on the instructions, but enlisting the help of a friendly local or a hotel employee might be required.
SIM cards bought in the U.S. prior to departure should come with complete operating instructions in English, including how to switch voice prompts to English (if possible).
Foreign Phone Number
When you use a SIM from an overseas cell phone company, you are a customer of that phone company and you will have a local (foreign) phone number. For example, if using a SIM card from a French cell phone company, you will have a French phone number, etc.
This means that a caller from the U.S. will need to dial an international call to reach you and the caller will incur international call charges at whatever rate their phone service charges. There are forwarding services that will forward calls to your U.S. number to your overseas cell phone for a fee.
For people doing business locally or staying for extended periods, having a local phone number is advantageous.
Pros and Cons - GSM Phones and Prepaid SIM Cards
PROS
Lowest Possible Calling Rates
In Western countries the cost of a local call is often less than a Dollar a minute. Calls to the U.S. range from about fifty cents a minute (from Australia) to about $1.50, or about a Euro, from much of Europe.
Free Incoming Calls
In most Western countries, including Europe and Australia, there is no charge for incoming calls, even on calls originating in foreign countries (yes, this includes the U.S.). In fact, incoming calls can be received from anywhere in the world even when there is no outgoing call credit on the account. This is ideal for parents wanting a way to reach spendthrift college students.
No Bills
With a prepaid phone service, there is no billing involved at any time, therefore it is very easy to control spending and there’s no chance of receiving an unexpectedly high bill. Instead, credit is added to the account and outgoing calls charges are deducted from that credit.
CONS
Can Lose Ability to Make Outgoing Calls
This will only happen if the prepaid account credit reaches zero and you are without a spare recharge voucher, and there are no open stores, gas stations, or convenience stores nearby. This is easy to avoid, but because being unable to make calls (except emergency calls) is serious, and for some people unacceptable, it needs to be mentioned upfront.
Credit Added Manually
The phone account comes with some initial call credit. More credit is added by purchasing a recharge voucher at any location displaying your phone company’s logo.
These recharge cards are widely available at tobacco stands, convenience stores, gas stations, department stores and sometimes cafes. They are sold in various denominations of credit and look and operate similar to a gift card or a pre-paid calling card card. Simply scratch-off a panel on back to reveal a code and enter that code into the handset following the instructions.
Purchase or rent a GSM cell phone and prepaid SIM card before you go and use the local (overseas) phone company.
- Lowest possible rates - including free incoming calls in Europe (including calls from the U.S.)
- Pay as you go - no bill to come home to
- Requires buying call credit at local stores.
