The option of paying for calls in advance instead of making commitments for long-term contracts was initiated by Verizon Wireless on September 3. This move is expected to pit the company directly against rivals including Leap Wireless.

With more and more consumers trying to avoid long-term contract commitments, this move by Verizon is expected to help it attract new consumers and retain existing ones.

From in.news.yahoo.com:

Verizon Wireless, a venture of Verizon Communications and Vodafone Group Plc, said it is offering unlimited mobile Internet use for $30 per month to prepaid users of smartphones such as BlackBerrys.

But prepaid customers typically have to make do with less-advanced phones, while postpaid consumers get their choice of advanced phones that are heavily subsidized by operators.

The company did not offer a price list for the prepaid phones but said pricing would be close to the amount it charges customers signing up for a one-year postpaid contract.

For example, a prepaid customer would have to pay $394.99 for the Verizon’s flagship phone, the Droid X from Motorola Inc, whereas a postpaid customer would pay only $200 for the same phone after rebates.

However, prepaid smartphone customers will be able to opt to pay $10 per month for data service, if they do not mind that their usage will be capped at data downloads of 25 megabytes.

No price list was provided by Verizon but the company said that pricing would be in proximity to the amount it charges consumers signing up for a one-year postpaid contract.