Prepaid is getting more attention as prepaid cell phone companies are introducing more sophisticated handsets that can be embraced by younger text- and Web-oriented wireless customers, according to New Millennium Research (NMRC) executive director Allen Hepner.
Hepner, said that the arrival of the more advanced handsets should help prepaid phone service connect with recession-weary U.S. consumers who have not already considered prepaid as an alternative to more expensive and restrictive long-term contract-based cell phone service. He noted that super featured phones such as Verizon's Samsung Intenstiy, over many sophisticated features.
In December 2008 and March 2009, the NMRC published public opinion survey results that gauged the attitudes of U.S. phone consumers about contract-based and wireless cell-phone service.
Highlights of the NMRC surveys include the following:
• Two out of five Americans with contract-based cell phones are likely to cut back on their cell phones to save money if, as is widely expected, the economy gets worse over the next six months. (March 2009)
• No fewer than 40 million Americans - 26 percent of consumers with contract-based cell phone service -- are "more inclined today than ... six months ago to look at a way to save money on your cell phone bill, such as by switching to a prepaid cell phone service." (March 2009)
• Of those Americans with cell phones, fewer than one in five (16 percent or nearly 29 million people) have a prepaid phone. Of the balance, 85 percent have "postpaid"/contract-based service where they pay a monthly fee. (The two percentages add up to more than 100 percent because of a small number of consumers who have both prepaid and postpaid cell phones.) (December 2008) • Only 44 percent of those age 18-24 years of age say they know when
their contract-based wireless phone penalty ends. This percentage
increases to 58 percent among those 25-34 and reaches its peak of 61
percent with those age 35-44. The percentage decreases somewhat to 55
percent for those aged 45-64 and declines sharply to 37 percent among
those age 65 and over. (December 2008)
While NMRC has taken a leadership role in studying the views of U.S.
consumers about contract-based and prepaid cell phone services, it is
not alone in reaching the conclusions that millions of consumers could
be better served in cheaper prepaid plans. Over the last two year, such
organizations as Consumer Reports and the National Consumers League
have both emphasized that millions of Americans now on contract-based
cell phone plans could save money by switching to a prepaid cell phone
service.
ABOUT NMRC
Created in 1999, the New Millennium Research Council is a Washington,
D.C. think tank. The work of the NMRC focuses primarily on the fields
of telecommunications and technology. The contributors to NMRC reports
develop workable, real-world solutions to the issues and challe