Mobile phone with internal accounting

The system comprises telephone units each with a processor (56), memory (58, 66) and internal accounting code means; the code means includes an account with representation of available funds, charge rates, and a billing algorithm for classifying calls into billing categories, select a charge rate, calculate a charge in real time and subtract it from the account. A host processor (14) operated by a system provider, serving for coordination of accounts, receiving and storing mobile unit information including identification and operating codes for the usage of the unit and communicating operating codes to units. The computer program is adapted to control the system and the units. The unit is adapted to work within the system. The method makes/keeps the unit active.