In a shift that could become a big threat to Apple Inc., U.S. consumers are increasingly signing up for a type of wireless service plan popular around the world that’s traditionally not been in favor here — prepaid accounts.
Prepaid plans typically allow consumers to purchase services in advance in bite-sized chunks — whether by the minute, the megabyte or the month — and allow them to cancel at any time. In contrast, the standard plans offered by the big carriers, such as AT&T and Verizon, generally require users to sign up for pricey two-year service agreements.
Although prepaid accounts still represent less than a quarter of all wireless service plans in the United States, they’re gaining ground rapidly. Half of all new wireless accounts added between 2008 and last year were prepaid ones.
— Troy Wolverton,
San Jose Mercury News
