T-Mobile has effectively put an end to wireless contracts, opting instead to allow all customers to sign up for “pay-as-you-go” service similar to the plans offered by Straight Talk, TracFone, Virgin Mobile and others. Could this be a trend sweeping the industry? I happen to think it is.

Pay-as-you-go cell phone service has been offered for years by TracFone and their no-contract brethren, but the concept really hit its stride when Wal-Mart jumped into the game with their Strait Talk service. The thought of being able to switch carriers at a moment’s notice without having to pay a penalty is causing customers to jump ship in large numbers when their contracts expire, switching instead to companies that don’t require a contract.  [Read more…]