Wednesday, April 22, 2009

Cheap Prepaid Plans are Shaking up the Wireless Industry?

I was just reading an article about cheap prepaid cell phone plans and the affect they have had on the wireless phone industry. Apparently prepaid wireless is making big gains. According to this article by the Associated Press, " Cut-rate prepaid plans shake up wireless industry."

This article is about wireless carriers reporting their financial results this week. Many investors are going to be keeping an eye on these reports, looking out for any data evidence of losses caused by cut rate plans available for prepaid cellular phones.

While prepaid phones were traditionally used mostly by those with problem credit and only offered on a pay as you go basis, the big change in recent years ( especially of the last year), is the increasing availability of prepaid plans that are much better deals than the old per minute prepaid plans. Many of these prepaid plans offer values very similar to traditional monthly wireless phone plans offered by contract carriers. They also offer the benefit of no credit check and no long term contractual commitments.

What does this have to do with the wireless industry? Analysts see carriers adding more prepaid customers this year than postpaid customers, a change from years past. Many providers will be adding new cut-rate prepaid and postpaid plans to either capture the prepaid market or keep with it. These also include special offers to preferred customers.

For example, Sprint Nextel runs the Boost Mobile brand, which offers 50 dollar plans that allow unlimited wireless calling, text messaging, and wireless web.

Options for AT&T, Verizon Wireless, and other major carriers including starting their own prepaid plans or acquiring existing ones.

It seems the trend in cell phone is going to be either very low cost prepaid services with a lot of features or more expensive but very highly valued plans that offer unlimited usage of both calls and messaging features.


See: http://www.google.com/hostednews/ap/article/ALeqM5iNAaUjbjXb0uJLpxTbHB9X4uq3tgD97MB4QG5