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U.S. Prepaid Wireless Service Markets
Frost & Sullivan, Aug 2000
Growing Prepaid Without Cannibalizing Postpaid
Prepaid wireless service providers must offer flexible plans to differentiate from post-paid services, as providers find new opportunities in under-served end-user segments, it will alleviate concerns of eroding the post-paid customer base. These new end-user markets will increase both pre and post-paid profits, and can ultimately lead prepaid customers to post-paid services as wireless becomes part of their everyday life.
Prepaid service, which was generally marketed to credit-challenged customers, needs to target the low-use, sporadic-use, and contract-aversion market segments.
This Frost & Sullivan report analyzes the growing prepaid wireless service markets in the U.S. It offers market revenue forecasts, drivers, restraints, challenges, and strategies. It is the perfect resource for companies that want to take advantage of key market opportunities.
Identification of End User Key to Market Success
Carriers need to identify the potential for new users and market their services to them. As more customers are becoming more familiar with the prepaid format, they recognize that prepaid plans are an attractive alternative to post-paid options. These plans need to be flexible enough to accommodate use patterns that are not currently served by post-paid plans.
U.S. wireless carriers have been slow in recognizing the full market potential of prepaid, states the author of this report. Their perception is that prepaid is only for credit-challenged consumers, which has led carriers to punitive pricing strategies with service plans that have little use pattern flexibility.
Market Consolidation Stiffening Competition
A drastically changing wireless industry is the result of consumer desire for national flat-rate plans. Consolidation of the industry through partnering, mergers, and acquisitions is widespread and increases competition. Companies without a national footprint will find it difficult to compete with the carriers who offer nationwide coverage, states the author.
Users of this report benefit from the most up-to-date market intelligence available in the U.S. prepaid wireless service markets. This can put you on the inside track and help you pull ahead of the competition.
Additional Informatio
Market Participants
Alltel Corporation
Ameritech Corporation
AT&T Corporation
Bell Atlantic Voice Division
Ez Prepaid
Cable & Wireless USA
Global Priorities
Fleishma-Hillard
Sprint PCS
Sprawlnet.com
Nortel Networks
Verizo-Wireless
Intele-Card News
International Telecard Association
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