AT&T jumps on the prepaid bus with Aio Wireless

In an effort to compete with T-Mobile's new prepaid plans, as well as other prepaid carriers in the US, AT&T has launched a new prepaid service subsidiary called Aio Wireless, where users can buy a new phone off-contract and pay for a prepaid plan, but still be able to use AT&T's towers. The service is only available in Houston, Orlando, and Tampa for the time being.

The plans are competitive with other prepaid providers out there, and $40 per month will land you unlimited minutes and text messages, as well as 250MB of data. However, if you need more megabytes to get through that whole season of Parks and Recreation on Netflix, you can opt for the $55 per month plan that gives you 2GB of data, or $70 for 7GB of data.

As for the phone selection, you'll have your pick at numerous devices at different price points, all the way down to $30. However, if it's an iPhone you're wanting, you can grab the iPhone 5 for $649. However, Aio Wireless isn't offering LTE, and there's no word on whether or not that feature will come eventually, so if you need faster speeds while on the go, maybe look elsewhere.

However, if you simply need something just to get you buy, and you're set on AT&T's coverage, Aio Wireless is a viable option. While it's only available on Houston, Orlando, and Tampa, AT&T says they plan on expanding over the next couple of years, so hold on to your horses if you live elsewhere and are wanting to hop on.