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THE FUTURE OF 
PREPAID TELEPHONY

Prepaid Calling Cards, Prepaid Wireless, And Prepaid Wireline: To The Year 2006

When the Telecom Act of 1996 was passed, few people expected that prepaid telephony would emerge as a major contributor to competition in local telecommunications.  At the time, prepaid phone cards served a niche in the long distance market, which focused on pay phones.  But today there can be little doubt as to the vitality and importance of this market, nor the fact that it will be instrumental in transforming telecommunications marketing and customer service over the next few years.  Indeed, prepaid telephony revenues in the United States, which easily will exceed $10 billion in 2002, will increase substantially by 2006.  Moreover, The PELORUS Group anticipates major shifts in revenues among existing service providers, and to new players.

 

Prepaid telephony is being wielded to tap the potential of underserved segments within both the wireline and the wireless markets.  In the wireline market, it is enjoying marked success within the credit challenged and unbanked segments.  In the wireless market, prepaid is making gains in the youth segment.  In this landmark report, The PELORUS Group details why the potential of certain prepaid segments represents far more than merely the revenue that can be generated in the next year or two.  Perhaps even more importantly, the study examines prepaid as a tool to customize service to the specific needs of the communications service user and to deliver these customized services when they are needed.

 

Prepaid telephony has made undeniable inroads in the wireline market.  The success of prepaid calling cards is indisputable.  Meanwhile, prepaid dialtone has expanded well beyond many previous projections.  However, this report provides an economic analysis that suggests that the market can best be served by prepaid wireless programs.  Surprisingly, however, many wireless service providers remain reluctant to encourage prepaid programs.  Within this exclusive report, The PELORUS Group provides an economic analysis of prepaid vs. postpaid programs, which demonstrates that prepaid programs are or can be more profitable in today’s wireless environment.  Moreover, prepaid wireless will emerge as a vehicle for converting wireline revenues to wireless revenues.  That trend has already begun.

 

The third in an acclaimed series of prepaid telephony analyses, “The Future Of Prepaid Telephony” provides a granular analysis of the three major segments of prepaid telephony -- calling cards, wireless and wireline.  The cross-elasticity of several tends, such as point of sale activation, which levy an impact on all segments, is explained in detail, with the report examining the major factors driving these trends, while casting a keen eye on what we can expect over each of the next five years.  This exclusive report is recommended reading for anyone who must market or deliver communications services to people who do not want or cannot qualify for traditional telecom subscriber programs.

 

Price: $4,495 US   
Published:  September, 2002
278 Pages

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