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Contract Wireless Subscribers Decline for First Time
As Users Flee to Less Expensive Prepaid Offers
by Karl Bode 06:30PM Thursday May 10 2012 Tipped by buddahbless See Profile
For the first time in history U.S. wireless carriers saw an overall decline in contract wireless subscriptions as users flock toward prepaid offers. The seven largest U.S. phone companies, who collectively represent roughly 95 percent of the wireless market, lost a combined 52,000 subscribers from contract-based plans during the first quarter. With the wireless market being saturated, more cost-conscious users are ignoring the siren call of newer subsidized devices and are finding cost savings in prepaid offerings. Those prepaid offerings saw a jump of about 2 million, though that total is actually down from the 5 million prepaid subscribers added to the market during the same quarter one year earlier.