A Pre-Paid Connection

Over at Light Reading, Jeff Baumgartner highlights a new idea aimed at bridging the digital divide:

The pre-paid model has worked wonders for the mobile market over the years, so why shouldn’t it be applied to U.S. broadband?

Wipro Ltd. is pitching the idea to the nation’s cable operators as they think about how to stoke broadband service growth. They’d like to tailor packages to lower-income consumers (or students), but without the associated risks of non-payments and bad debt.

“There’s sort of a hole out there that’s not being addressed,” says Stephen Snyder, the global head of business innovation for Wipro’s Global Media and Telecom unit. “It could open up a whole new revenue stream.”

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