• phoneymouse@lemmy.world
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    7 months ago

    Postpaid bakes in the price of the phone. It’s why if you do postpaid and don’t upgrade your phone immediately when eligible, you’re gettin ripped off. It’s also why they lock you in for 2 years or charge a big fee to leave. They need you to pay for the device.

    Prepaid is just the cost of service, you accept the price of the handset. This lets you do things like keep a phone for 3-4 years and save money by deferred upgrades.