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PrePaid - The new Target Market

Discussion in 'GENERAL Wireless Discussion' started by KevinJames, Dec 6, 2001.

  1. KevinJames

    KevinJames WA's 1st retired mod
    Senior Member

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    AT&T & Verizon
    The following is quoted from a Wireless.NewsFactor article. Link to rest of article at bottom of this post.

    Wireless companies have shied away from aggressively promoting their offerings. Prepaid customers tend to draw lower revenue and have higher turnover than regular wireless users. And the per-minute rates are as high as 50 cents per minute, restricting many users.

    "Prepaid is not an affordable solution," said Chip Novick, vice president of consumer marketing for Sprint PCS. "Folks who have less-than-perfect credit generally don't have a lot of discretionary income, and as a result they're trying to stretch every dollar."

    Hook 'Em Young

    "A big part of the focus is on the 16- to 24-year-old age group, which has a special affinity for their phones," said Barry Yancey, director of retail for Verizon Wireless. "It's a pretty simple program to get set up."

    Carriers hope the prepaid wireless plans will help them grab the youth market and transform them into post-paid wireless users.

    "It's a good way to get them started using wireless and build their brand loyalty and preferences early on," said Leigh Anne Crow, regional vice president of marketing for Cingular Wireless.

    complete story at:

    http://wireless.newsfactor.com/perl/story/15175.html
    ______
    Why does the phrase "hook 'em" bother me? And--Aren't the wireless firms just deceiving themselves with this "brand loyalty" mantra of theirs. Just a brief glance at WirelessAdvisor tells me that people are ready and willing to try change even when their provider has been good.
     
  2. CellguyNY

    CellguyNY Junior Member
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    Dear Kev,

    Heres the deal about Prepaid and there are only three carriers I know of that are carrying it, one being voicstream (Easyspeak), AT&T Free2GO and Verizon's Free Up system. These systems I feel will probably be done away with and if they are looking at targeting the younger consumers being my age 23 and down to 16 is a joke because they don't want prepaid anymore when they have mommy and daddy warbucks most of them especially here in NYC to get them on there contract added on. This is why most companys are offering in my theory the Family plans that have unlimited phone to phone and outrageous weekend minutes, the thing about it is they are cheap when you split them amongst three or four users. Even though some users are younger than 16 and have mommy and daddy pay there bill for them goes without saying. When I see kids in the suburbs on Long Island carrying a Nextel I1000 in there back pocket tells me there is not much hope for prepaid out here unless you have no credit at all and even then some companys like sprint and now voicestream offer things like smartaccess for customers who have bad credit which is when they waive the deposit and make them pay an activation fee of $75 or higher and put them on a mediocre plan like 39.99, but there are those customers who dont qualify and get a deposit of $500 and higher these usually either don't get a phone or go on someone elses plan who has better credit than themselves. So I think after a couple of years prepaid will die out for instance the companys are now pushing contracts by lowering the amount of days a customer has to get the minimum prepaid card just as of 12-4-01 AT&T cut there Free2Go days from 90 to 45 days before you had to spend the money for a new card. And alot of the dealers dont want to carry it either because they have to sell the phone plus a card to make there money (NO COMMISSIONS ON PREPAID) and most don't have an excess of 80 dollars or more to spend on Prepaid out here and they usually dont keep up the minutes and there phone gets shut off any way.
     
  3. KevinJames

    KevinJames WA's 1st retired mod
    Senior Member

    Joined:
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    Location:
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    Samsung S7-Edge
    Wireless Provider(s):
    AT&T & Verizon
    Good, then we are agreed. Barney Yancey (Verizon honcho) is out of touch with reality. I likewise know of many "youth" who are getting their own contract phones or having their parents take care of it.
     

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