Ready Wireless, a provider of prepaid wireless services. Based in Hiawatha, Iowa, has launched two unlimited usage prepaid plans. The first provides three days of calling and a bundle of text messages for $10. The other plan provides seven days worth of calling for $15.
The plans are aimed at casual users who prefer unlimited calling, but have only sporadic use, or want to manage cash outlays closely. That's one potential new market segment for prepaid or postpaid.
The other market is any consumer that simply wants payment predictability.
Recently there have been new offers launched in the industry by prepaid wireless providers offering monthly plans costing $45 to $50. And amidst a bit of a shift from postpaid to prepaid plans, some speculate that another shift from traditional prepaid products to "unlimited" plans could occur.
John Hodulik, UBS analyst says 12 million of 50 million total U.S. prepaid subscribers are on an unlimited plan. But those numbers could grow very fast if a price war breaks out, and resets pric ing expectations.
Unlimited plans might be creating a new value proposition: "pay to avoid limits and overage charges" that might challenge the "pay only for what you use" value proposition.
In principle, those value propositions should hold either for prepay or postpaid plans.
Most customers still remain in the middle, paying for a bucket of minutes on a "use it or lose it" basis. But there always is an element of bill unpredictability with such plans.
You might think heavy talkers are the prime candidates for an unlimited plan, but I'd be willing to bet that the bigger market, ultimately, will be the typical consumer that simply values predictability.
As the prices of unlimited plans fall, they reach a level that appeals not only to heavy callers, but virtually any consumer that simply wants payment predictability, with no surprises. That's going to be the bigger market.
No comments:
Post a Comment