February 3rd, 2011

Be Smart with Your Prepay Mart

By Michal Samuels- Marketing Manager

Two important trends in the telecommunications market cannot be overlooked: the penetration of Smartphone and the fact that prepaid customers outnumbered postpaid customers in 2010. True, these two trends seem completely unrelated. Yet, the combination of both trends may have a significant effect on service providers’ revenues and marketing strategy.

According to Gartner research, by end of 2012 over 75% of enterprise mobile users will have a Smartphone, driven by low service costs (Gartner Hype Cycle for Wireless Devices, Software and Services, 2010). Frost and Sullivan, ICT Practice supports this by claiming that Asia Pacific will be driven by price decline and application richness, with Smartphones expected to be mass marketed by 2015 and account for 60% of mobile sub base in Asia Pacific.

Add to this rapid growth the remarkable pace of technology adoption. Today’s coolest device becomes old fashioned in about six months. This makes the whole “exclusive” positioning of Smartphones very short lived. If iPhones and various Smartphone devices used to be perceived as luxurious items, today this socio-economical-mobile-device segmentation seems irrelevant. Welcome to the prepaid world.

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