The logic behind theT-Mobile USA MetroPCS deal is that the combined firm will be able to climb the market share rankings on the strength of demand for prepaid services, sold without contract, on a "value" platform, with a skew towards younger users.
Historically, one might have viewed that strategy skeptically, given the lower average revenue per user prepaid accounts represent. That is one reason the market leaders have tried to avoid encouraging users to buy prepaid services, in place of postpaid.
At the same time, T-Mobile USA has said it will emphasize the wholesale segment more heavily, something that is the mainstay for Clearwire and a significant business for Sprint.
Of course, on one hand, you can argue the potential for prepaid in the United States is quite high, given prevailing adoption in many other countries, where prepaid is dominant. Some also argue that tough economic conditions will drive more people away from postpaid, and towards prepaid.
Friday, October 5, 2012
Can T-Mobile Climb to 3rd Spot on Strength of Prepaid?
Gary Kim has been a digital infra analyst and journalist for more than 30 years, covering the business impact of technology, pre- and post-internet. He sees a similar evolution coming with AI. General-purpose technologies do not come along very often, but when they do, they change life, economies and industries.
Subscribe to:
Post Comments (Atom)
Zoom Wants to Become a "Digital Twin Equipped With Your Institutional Knowledge"
Perplexity and OpenAI hope to use artificial intelligence to challenge Google for search leadership. So Zoom says it will use AI to challen...
-
We have all repeatedly seen comparisons of equity value of hyperscale app providers compared to the value of connectivity providers, which s...
-
It really is surprising how often a Pareto distribution--the “80/20 rule--appears in business life, or in life, generally. Basically, the...
-
One recurring issue with forecasts of multi-access edge computing is that it is easier to make predictions about cost than revenue and infra...
No comments:
Post a Comment