NEW YORK (AP) — Leap Wireless, the parent of the Cricket cellphone service, says it will be the first U.S. phone company to sell the iPhone on a prepaid, no-contract basis.
Starting June 22, Leap will start selling the iPhone 4S starting at $500 and the iPhone 4 starting at $400. Service will cost $55 per month for unlimited calls, texting and data.
Leap Wireless International Inc., which is based in San Diego, focuses on selling no-contract service to low-income households. Its own network is limited to some cities. In other places, it uses Sprint Nextel Corp.'s network.
Larger carriers also sell the iPhone on a no-contract basis. But those phones cost more, and service costs the same as for on-contract phones.
Leap shares rose 7.5 percent in pre-market trading.