Majority of PrePay Customers Will Use MVNO's
The prepaid wireless industry will grow at a compound annual growth rate in excess of 20%, according to a new study of the prepaid sector by ATLANTIC-ACM. Much of this growth will come in the form of hybrid plans, which will account for more than two-thirds of industry revenues by 2009. (Hybrid plans are prepaid plans functioning with automatic replenishment facilitated via credit cards or checking accounts for monthly recurring payments.)
However, below the surface-level revenue division between hybrid and pay-as-you-go plans, much of the industry's revenue growth will be driven by Mobile Virtual Network Operators (MVNOs).
"We're really at the breakaway point for MVNOs right now," said Fedor Smith, ATLANTIC-ACM analyst covering the prepaid sector. "The prepaid industry has historically been the domain of niche marketers that have the ability to meet the needs of very specific types of customers. History is repeating itself as niche-oriented MVNOs are overtaking traditional providers for the dominant industry position."
Last year, MVNOs caught up with traditional, facilities-based wireless carriers in total prepaid subscribers as each provider type served approximately 11.1 million subscribers, according to the report. This year, MVNOs will serve 7.7 million more prepaid subscribers than traditional carriers as they capture growth and existing market share from traditional players. By 2009, MVNOs will account for nearly four of every five prepaid wireless subscribers."
Posted to the site on 2nd June 2005
