A system and method for providing prepaid dialtone services. The system includes a prepaid dialtone service center having an applications server that maintains a prepaid dialtone subscriber database including subscriber identification and service period information. The applications server is configured to automatically remind subscribers to renew their prepaid dialtone account and communicates with a local exchange carrier to place a hold on, or cancel, an expired subscriber account. The method includes the features of determining and monitoring a service period for a prepaid dialtone subscriber, communicating a reminder to the subscriber prior to expiration of the service period, and communicating with a local exchange carrier servicing the subscriber upon expiration of the service period.