Prepaid mobile phones might become costly after the recent ruling

Prepaid mobile phones might become costly after the recent ruling

Prepaid wireless companies in the United States have said that they might end up raising the prices of their discount cellphones. This comes after a recent ruling, which makes it legal to break the locks on such mobile phones.

Market analysts believe that if the prices of these prepaid devices are raised, it would damage the prepaid wireless business. This segment is the fastest growing in the mobile service market and these benefit the consumers who cannot afford traditional plans.

Jayne Wallace of Virgin Mobile, the No. 2 prepaid company in the country said: “It could end up hurting consumers if prepaid wireless service becomes less affordable.”

TracFone is the market player in this segment and they have already sued asking this provision to be removed from the federal ruling. They suffer because their phones are resold in overseas markets at a huge profit.