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Market Research Report

US Prepaid Update, April 2016

Published by Ovum (TMT Intelligence, Informa) Product code 166570
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US Prepaid Update, April 2016
Published: June 22, 2016 Content info:
Description

Wireless operators added 6.7m new connections in 3Q15 to end with 408.6m total wireless connections. The prepaid segment grew in 4Q15, although net additions were 75.3% less in 4Q15 than 3Q15. Prepaid retail subs grew by 194.5k subscribers, while prepaid

Highlights

  • T-Mobile and AT&T, with their strong prepaid brands Metro PCS and Cricket, respectively, led prepaid net adds in 4Q15, each with 469,000 net adds. Other than a 7,000 gain by US Cellular, all others reported prepaid segment losses.
  • Device upgrade programs aim to boost equipment sales and combat the lengthening device replacement cycle that has emerged with the shift from subsidized devices to EIP.
  • Two-year service contracts have all but disappeared from the US market. Without service contracts and subsidized devices, the postpaid options compete much more directly with the prepaid options. This could be a reason that the prepaid market has become m
  • Learn about prepaid subscriber year-on-year growth trends by major US operators.
  • Compare total, postpaid, and prepaid subscriber and market share trends by operator year-on-year.

Features Benefits

  • Learn about prepaid subscriber year-on-year growth trends by major US operators.
  • Compare total, postpaid, and prepaid subscriber and market share trends by operator year-on-year.
  • Compare US operator KPIs and major activities in the quarter, especially as they relate to prepaid.

Questions Answers

  • What is the customer segment mix by US operator in 4Q15?
  • How did prepaid churn rates in 4Q15 compare across US operators and how have they changed over the past five quarters?
  • What trends in the market are helping to grow the BYOD trend?
Table of Contents
Product Code: TE0001-001028

Table of Contents

SUMMARY

  • In a nutshell
  • Ovum view
  • Key messages
  • Recommendations for operators
  • Recommendations for OSS/BSS vendors

HISTORY OF PREPAID WIRELESS AROUND THE GLOBE

  • Most wireless customers worldwide are prepaid customers
  • Operators are moving away from prepaid-to-postpaid migration strategies

NEW CUSTOMER DEMANDS ARE DRIVING OPERATORS TO EXPAND PREPAID SERVICES AND FEATURES

  • Prepaid approaches and motivations vary by region and by operator
  • Customers want more from prepaid wireless

OPERATORS TAKE A HYBRID APPROACH TO PREPAID

  • Hybrid plans come in many forms
  • Customer choice, cost control, and loyalty are driving the shift towards hybrid service models
  • Operators move up-market with bundled prepaid services, and down-market with session-based plans
  • Hybrid plans deployed in 2010

PREPAID SEGMENTATION AND LOYALTY GETS STRATEGIC

  • Operators employ more sophisticated customer segmentation strategies
  • Operators segment prepaid customers by usage type, age, and revenue
  • Loyalty is a critical component of successful prepaid strategies
  • Operators in North America and Asia-Pacific take a different approach to encouraging loyalty

PREPAID PRESENTS UNIQUE SERVICE DELIVERY CHALLENGES

  • Prepaid services present charging system challenges
  • Implementing new prepaid strategies means upgrading current OSS/BSS systems for many operators
  • Migration, integration, speed to market, and flexibility top operators' list of challenges for current OSS/BSS implementations

APPENDIX

  • Methodology
  • Further reading
  • Author
  • Ovum Consulting
  • Disclaimer
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