Did a google news search on this. From my own experience, prepaid phone card is very popular in China. I have used those from time to time when I visit China. I believe most of China Mobile (NYSE: CHL) subscribers are prepaid customers, which is opposite to the AT&T and Verizon Wireless customers in the US (where most customers have a calling plan and pay monthly).
T-mobile is doing a $25 prepaid card promotion on its prepaid phone. T-mobile is a distant 4th wireless carrier in the US, and it’s trying to take advantage of the recession to get more customers. Sprint is doing similar things with its boostmobile subsidiary.
Video below: one of the prepaid phone at T-mobile web site; source: YouTube.