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The Changing Face of Prepaid

Are we witnessing a drastic revolution or slow evolution in the wireless market?


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The United States wireless industry has been dominated historically by traditional postpaid plans where the customer pays for voice and data services on a monthly billing cycle, and is bound by two-year contracts. Over the last 36 months, however, the wireless industry has seen significant changes, specifically in the emergence of prepaid services. Some major U.S. carriers are seeing a slowdown in net subscriber additions (“adds”) of postpaid customers, while prepaid net additions are growing dramatically. Indeed, 4Q 2009 marked the first time that prepaid represented the majority of both the gross and net adds. Are we witnessing a drastic revolution or slow evolution in the wireless market? We believe we are in the midst of a revolution where a portion of the U.S. wireless market is moving increasingly from traditional postpaid price plans to prepaid or no-contracts wireless. We invite you to learn more by downloading “The Changing Face of Prepaid.”

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