History of prepaid mobile phones

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The history of the prepaid mobile phones began in the 1990s when mobile phone operators sought to expand their market reach. Up until this point, mobile phone services were exclusively offered on a postpaid basis (contract-based), which excluded individuals with poor credit ratings and minors under the age of 18 (the typical age of contractual.) In early 1991, Kenneth Johnson of Queens, New York, President of Alicomm Mobile, was the first to successfully create a prepaid cellular phone and Network. His company expanded to a Sales force from Maine to Florida. Two years later others would come out with similar systems.

Prepaid mobile phones are used around the world.