I think the time is coming sooner rather than later, when we will no longer see wireless phone contracts. There is a certain kind of wireless service provider that we in the industry call an MVNO, a mobile virtual network operator. There are many MVNOs and some are really good. An MVNO doesn't own the license or equipment to provide wireless service. They buy wireless service at wholesale prices and resell it to the consumer.There are literally hundreds of these types of companies. just because they are not the actual producer of the service they should not be overlooked. Remember they are supplying you the same service as the big wireless providers.
MVNOs can be very competitive and can give great service. This is great for the consumer. The big service providers sell their service to these MVNO companies. Then they have to compete with the companies that they sell to. In my opinion this self-made competition is causing the larger wireless providers to consider offering prepaid plans. The kind like the MVNO companies offer. Without this added competition, I imagine wireless service would still be an expensive luxury. Only hi-powered business executives could afford to use.
MVNOs can be very competitive and can give great service. This is great for the consumer. The big service providers sell their service to these MVNO companies. Then they have to compete with the companies that they sell to. In my opinion this self-made competition is causing the larger wireless providers to consider offering prepaid plans. The kind like the MVNO companies offer. Without this added competition, I imagine wireless service would still be an expensive luxury. Only hi-powered business executives could afford to use.