79 Percent of Prepaid Wireless Users will be MVNO Customers by 2009

US

ATLANTIC-ACM: The prepaid wireless industry will grow at a compound annual growth rate in excess of 20 percent. Much of this growth will come in the form of hybrid plans, which will account for more than two-thirds of industry revenues by 2009. (Hybrid plans are prepaid plans functioning with automatic replenishment facilitated via credit cards or checking accounts for monthly recurring payments.) However, below the surface-level revenue division between hybrid and pay-as-you-go plans, much of the industry’s revenue growth will be driven by Mobile Virtual Network Operators (MVNOs).

We’re really at the breakaway point for MVNOs right now. The prepaid industry has historically been the domain of niche marketers that have the ability to meet the needs of very specific types of customers. History is repeating itself as niche-oriented MVNOs are overtaking traditional providers for the dominant industry position.

Last year, MVNOs caught up with traditional, facilities-based wireless carriers in total prepaid subscribers as each provider type served approximately 11.1 million subscribers. This year, MVNOs will serve 7.7 million more prepaid subscribers than traditional carriers as they capture growth and existing market share from traditional players. 2009, MVNOs will account for nearly four of every five prepaid wireless subscribers.

Prepaid Insights 2005-2009: Sizing Up Markets, Opportunities and Players Publ 20050531