The iPhone Is Moving to Pre-paid with Leap Wireless

Product Insight

Post-paid operators retained advantages by offering the newest, most advanced and desirable smartphones to draw consumers into the more profitable post-paid contracts. If the iPhone at Leap proves to be successful, post-paid operators will be forced to deliver competitive offerings through their pre-paid subsidiaries. It remains to be seen if pre-paid carriers can produce margins similar to post-paid carriers by eliminating much of the handset subsidization costs.

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