Bottom line, in a world of ever changing technology and media services why would anyone want to get trapped in a typical postpaid contract?

The answer is either no one or very few people.

Dan Hesse may have lost 1.3 million long-term contract subscribers in 1Q2009, but that is okay. Postpaid contracts are going to become things of the past. When you consider how the telecom environment has change to date and how it is changing now, telecom carriers are running out of reasons for why postpaid contracts are even necessary.

Sprint’s customer loss needs to be viewed in the context of a changing market environment. Hesse’s re-launching (for lack of a better word) of Boost is a sign of the times ahead. Think about it. Look around yourself. The current recession is having a profound impact on the way wireless carriers are doing business and will have to do business.

Wireless media, email, and Internet usage has been growing rapidly over the last 10 years. The current level of wireless usage has increased to the point where the number of households with wireless only service now surpasses the number of households that have landline only service. Further, the recession has accelerated the growth of wireless today. The recession has also pushed more and more users into prepaid wireless service.

In today’s economic environment people want the most for their money and that means wanting the best. This ultimately means the carriers will need to compete aggressively for customers by deploying new technology and services at an ever increasing basis.

A service like Boost is attractive to the ever growing ranks of cash strapped consumers and to the poor. Personal economic circumstances aside, Boost’s model is indicative of the future. Wireless carriers will need to move away from postpaid contracts and embrace prepaid services.

Hesse is headed down the right path.