Skip to main content

Highest Growth for Pre-Paid Mobile Services

During 2007 and into 2008, the market for pre-paid mobile services has continued to grow more than twice as fast as the post-paid contract market, according to the latest study from Informa Telecoms & Media.

At the end of 2007, there were 2.33 billion prepaid subscriptions in the world, of which nearly 2 percent were accounted for by prepaid WCDMA accesses. Prepaid services generated $241.9 billion in revenues for mobile network operators in 2007.

By far the largest prepaid market was Asia Pacific, with 43 percent of global subscriptions and almost 30 percent of revenues.

The number of people owning multiple SIM cards continues to rise, and at the end of 2008 about 28.9 percent of reported subscriptions worldwide will be accounted for by secondary or tertiary SIM card ownership. Operators may be forced to consider whether issuing SIM cards is a sustainable way of increasing the lifetime value and profitability of individual customers.

Ultimately, understanding prepaid customer's individual value expectations rather than how many SIM cards are in circulation may be a more reliable route to long-term improvements in ARPU and profitability.

Informa Telecoms & Media predicts that by 2013 there will be 3.93 billion prepaid subscriptions, generating revenues of $382.2 billion. Although prepaid subscription growth will slow down to a global CAGR of just over 9 percent from 2007-2013, the prepaid market will still account for over 80 percent of new mobile subscriptions over the period and will continue to outperform contract growth.

In developing regions, there is extensive innovation in terms of designing tailored packages for prepaid customers and as a result prepaid customers are often able to access more advanced services than in developed markets.

However, operators need to balance the need to acquire share of very low-spending customers to increase their prepaid base, versus the need to develop increased value from existing prepaid customers in the long-term.

Differentiation will shift from price to value, and the role of new services that maximize the potential of the mobile handset will be key to growth.

Popular posts from this blog

Industrial and Manufacturing Technology Growth

In an evolving era of rapid advancement, market demand for innovative technology in the industrial and manufacturing sectors is skyrocketing. Leaders are recognizing the immense potential of digital transformation and are driving initiatives to integrate technologies into their business operations.  These initiatives aim to enhance efficiency, reduce costs, and ultimately drive growth and competitiveness in an increasingly digital business upward trajectory. The industrial and manufacturing sectors have been the backbone of the Global Networked Economy, contributing $16 trillion in value in 2021. Industrial and Manufacturing Tech Market Development   This growth represents a 20 percent increase from 2020, highlighting the resilience and adaptability of these sectors in the face of unprecedented challenges, according to the latest worldwide market study by ABI Research . The five largest manufacturing verticals -- automotive, computer and electronic, primary metal, food, and machinery -

Rise of AI-Enabled Smart Traffic Management

The demand for smart traffic management systems has grown due to rising urban populations and increasing vehicle ownership. With more people and cars concentrated in cities, problems like traffic congestion, air pollution, and greenhouse gas emissions are pressing issues. Since the early 2000s, government leaders have been exploring ways to leverage advances in IoT connectivity, sensors, artificial intelligence (AI), and data analytics to address these transportation challenges. The concept of a Smart City emerged in the 2010s, with smart mobility and intelligent traffic management as key components.  Smart Traffic Management Market Development Concerns about continued climate change, as well as cost savings from improved traffic flow, have further motivated local government investment in these advanced systems. According to the latest worldwide market study by Juniper Research, they found that by 2028, smart traffic management investment will be up by 75 percent from a 2023 figure of

AI Software Market will Reach $251 Billion

The growth in Artificial Intelligence (AI) software could lead to many benefits. As more organizations adopt AI, they may become more efficient, productive, and able to offer improved products and services. The global job market could also expand, with demand growing for roles like AI engineers and technicians. Plus, AI apps could enable breakthroughs in fields like healthcare, transportation, and energy. The worldwide AI software market will grow from $64 billion in 2022 to nearly $251 billion in 2027 at a compound annual growth rate (CAGR) of 31.4 percent, according to the latest market study by International Data Corporation (IDC). AI Software Market Development The forecast for AI-centric software includes Artificial Intelligence Platforms, AI Applications, AI System Infrastructure Software (SIS), and AI Application Development and Deployment (AD&D) software (excluding AI platforms). However, it does not include Generative AI (GenAI) platforms and applications, which IDC recent