Friday, September 30, 2005

Pre-Paid Wireless In Peril

Companies that currently offer pre-paid wireless services may have to completely re-think how they do business. It seems that a small company named Freedom Wireless actually holds a patent on most of what compromises pre-paid wireless technology. It successfully sued Boston Communications Group, Cingular Wireless and Western Wireless for patent violations recently, and was awarded a whopping $128 million. Anyone wanting to get into selling pre-paid wireless may soon have to pay-up as well.

This has a definite impact on pre-paid wireless companies for sure...but likely consumers too. Less choices perhaps? Higher costs? It's more than a little shakey right now. I suggest reading the Yankee Group article on the situation to get a better perspective.

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