What pricing models are possible?

Prepaid mobile phones resemble other mobile phones, except in manner of billing. Prepaid mobile phones operate by a user’s purchase of mobile services in advance of using them. By purchasing credit to use on a mobile phone network, a user can access a mobile phone network without ongoing billing. Users can then use the mobile phone to the limit of their credit.

The alternative billing method (and what is commonly referred to as a mobile phone contract) is post-paid mobile phones, where a user enters into a long-term billing arrangement with a mobile network operator or carriage service provider (CSP). The user in this situation is billed according to the use of mobile services at the end of each month. Theoretically, a user in this situation has no limit on use of mobile services and, as a consequence, unlimited credit. While most often a set amount is billed each month, it is possible for a user to be billed for any amount in this open ended arrangement.

Pre-paid mobile phones services are also known as pay-as-you-go or prepaid wireless services. A user can add more credit to the pre-paid account at any time. However most credit for a prepaid mobile phone has a time limit. Users who do not add more credit before expiration will lose their remaining balance.

Source: http://en.wikipedia.org/wiki/Prepaid_mobile_phone

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