$11 Billion in Prepaid Telecom Revenues by 2003!
April 7, 1999
RARITAN, NJ--(BUSINESS WIRE) via NewsEdge Corporation -- A new report
from The PELORUS Group entitled "Prepaid Telecommunication Services"
characterizes prepaid telecom as a hotbed of opportunity. Each component of
prepaid telecom - prepaid calling cards, prepaid wireless, prepaid wireline, and
prepaid Internet telephony - has a story of remarkable potential. But that story is
changing. In 1998, prepaid telecom revenues totaled $2.8 billion. Calling cards
accounted for over half (53%) of prepaid revenues. By 2003, they will provide less
than a third of the market's revenues. Concurrently, prepaid wireline will shift from
just 4% of the total to 32%. The changes don't stop there. Prepaid wireless and
prepaid Internet telephony are also ready to redefine their parameters.
From 1993 revenues of less than $300 million, the total prepaid
telecommunications market had leapt ten-fold to nearly $3 billion by the close of
1998. After a slow start, prepaid calling cards expanded beyond niche markets.
Today, they appeal to a variety of markets including college students, travelers,
people on the move, businesses, and charitable organizations. Although also
initially slow to take off, prepaid wireless, which includes cellular and paging
services, is expected to grow significantly. Prepaid wireline, which was not even
a product offering just a couple of years ago, is expected to grow as much as
prepaid calling cards, but in a shorter timeframe. Prepaid wireline is comprised of
prepaid dialtone and prepaid long distance. Already prepaid wireline has been
growing at a rate of about 30 percent per month, with an average revenue of $50
per month per customer. Prepaid Internet telephony, with improved voice quality
now truly a cost effective alternative to long distance service, will also enjoy
strong growth.
Non-traditional providers - the upstarts, the ISPs, the resellers, and CLECs - have
lured customers away from traditional providers. If these mainstream companies
wish to retain their customer base and grow revenues, then they must act soon
to stem the seepage - before it erupts into a flood.
In 1998, prepaid services generated $2.84 billion. Prepaid calling cards
contributed $1.52 billion, prepaid wireless $1.19 billion, prepaid wireline $100
million, and prepaid telephony $30 million. The report projects strong growth for
each component through 2003.
Visit The PELORUS Group at www.pelorus-group.com
<<Business Wire, 04-06-99, 09:12 Eastern>>
CONTACT: Greggory S. Blundell | Phone: 908-707-1121 | Fax: 908-707-1135 |
E-Mail: pelorusgrp@aol.com
[Copyright 1999, Business Wire]
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