Unplug Wireless is a cellular service provider that charges its customers $1 for three hours of talk time. So, if a customer's talk time for a month is 60 hours, the company charges him or her $20 at the end of the month. Which of the following business models does this best illustrate?
A) razor-razor-blade
B) subscription-based
C) pay-as-you-go
D) freemium

Question

Quizplus · Accepted Answer

In this scenario, Unplug Wireless uses the pay-as-you go business model. In the pay-as-you-go business model, the user pays for only the services he or she consumes. The pay-as-you go model is most widely used by utilities providing power and water and cell phone service plans, but is gaining momentum in other areas such as rental cars and cloud computing.

Unplug Wireless Is a Cellular Service Provider That Charges Its