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Analyst warns of prepaid price wars
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The success of Boost Mobile's $50 unlimited voice, data and walkie-talkie service has reignited fears of a wireless price war. Boost brought Sprint Nextel 674,000 new prepaid subscriptions in the first quarter, largely thanks to the unlimited plan. According to analyst Craig Moffett of Sanford C. Bernstein & Company, this is evidence that a price war is coming. Moffett said that 80 percent of industry-wide net subscriber additions in the first quarter were prepaid; in 2008 that the percentage was never higher than 51 percent in any quarter. Sprint CEO Dan Hesse dismissed the idea that Boost's prepaid offering would cannibalize the postpaid model, but Moffett warns that a battle for market share is replacing a chase for market growth--and price will be the deciding factor. Article, article.
Comments
Posted by PrepaidWirelessGuy | May 10, 2009 - 8:54pm
Bottom line is that postpaid wireless is on the decline and will continue as such until it is no longer the dominant form of wireless. Handset subsidy aside, as phones and plans become congruent on prepaid, postpaid makes no sense. The US is behind other countries in this respect; it's only a matter of time!
prepaid-wireless-guide.com/postpaid-wireless-demise.html
Posted by Bruce | May 12, 2009 - 8:31am
I agree that contracts are coming to an end, prepaid is the only way to go, that said I am not prepared to pay $50 per month even if I can talk as much as I want to, I can't possibly imagine wanting to talk all the time anyway. I have a very simple Net10 phone which only costs me 10 cents per minute no matter what, no daily fee, no roaming charge or long distance, I pay on average $20 per month so why would I want to pay $50 if I don't need it?
Posted by jason54914 | May 27, 2009 - 8:25pm
That is fine you use Net10, $20 a month, although NOT everyone is appeased to this.... others like myself have come use to wireless web, email, text, etc that Net10 does not offer and if they do good luck getting all of this for under 50 a month.
Posted by Anonymous | August 26, 2009 - 2:22pm
I agree with you Jason, alot of us are dependant on our wireless service for business, email, the web, and texting along with being able to talk anytime all day. It is not a matter of being on the phone all day consistantly its about being able to take your call when ever it comes knowing you are not on daytime minutes. I don't think you will be able to find a plan that will match this anywhere for under $50.00
Posted by Anonymous | September 21, 2009 - 11:35pm
Net 10 is the simplest prepaid out there for the low to medium user.I have also tried straight talk- $30.00/1000 min 1000 text with good sucess.
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