As we’ve learned in 2010, prepaid is taking over the cellular market. It has fueled industry growth for two quarters, and that doesn’t figure to cease any time soon. Sprint, the nation’s third largest wireless carrier, has put plenty of effort towards prepaid services, even though postpaid generates more revenue. It realizes that competing with telecom giants Verizon and AT&T could be a losing battle, so it’s using its industry advantage in a growing sector. Verizon, however, can continue its focus on postpaid, even if it means neglecting primary prepaid services. At least that’s the impression that CFO John Killian left when he spoke to Down Jones Newswires.
Three factors allow Verizon to sit back and let prepaid do its thing.
1) Smartphones and data plans. Verizon not only has plenty of high-end phones in its lineup, but it also has a number of excellent ones on the way. In addition to the next shipment of the HTC Incredible, which was so popular that it sold out almost immediately upon availability, it also has a new BlackBerry, the Bold 9650, on the way, plus a BlackBerry flip device. There’s always the rumored CDMA iPhone, too.
2) Family plans. I discussed prepaid family plans on Monday. Postpaid still has a corner on that section of the market, and with big minute bundles and unlimited text messaging plans on many lines, it can prove a substantial source of carrier income.
3) MVNOs. Verizon has prominent MVNO agreements with Straight Talk and Page Plus, among others, that take care of its prepaid business. It doesn’t make as much as it does off a primary prepaid customer, but it also doesn’t have the associated management and administrative cost
This post originated at PrepaidReviews.com – The number one resource for Tracfone Prepaid information on the web!
This post originated at PrepaidReviews.com – The number one resource for Tracfone Prepaid information on the web!Mail this post