- Postpaid mobile phone
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The post-paid mobile phone is a mobile phone for which service is provided by a prior arrangement with a carriage service provider (CSP). The user in this situation is billed after the fact according to their use of mobile services at the end of each month. Typically, the customer's contract specifies a limit or "allowance" of minutes, text messages etc., and the customer will be billed at a flat rate for any usage equal to or less than that allowance. Any usage above that limit incurs extra charges. Theoretically, a user in this situation has no limit on use of mobile services and, as a consequence, unlimited credit. This service is better for people with a secured income.
The alternative billing method is as a prepaid mobile phone where a user pays in advance for credit which is then consumed by use of the mobile phone service.
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