We’ve written a lot on this blog about the growth of prepaid in light of the economic turmoil of the past year or so, whether its about MetroPCS’s growth or T-Mobile adding a horde of new customers. But will the growth of new digital technology threaten the expansion of prepaid cell phones?
Voice over Internet Protocol (VoIP) is what we’re referring to in this case, and some think it may eventually replace prepaid cell service in general.
VoIP costs are quite low compared to various other types of phones calls, as anyone who knows about VoIP knows. Some analysts predict that prepaid and postpaid cells will be marginalized eventually in favor of the cheaper digital technology. Here’s a quote from one analyst:
“within 18-30 months the pressure will be on carriers to position “carrier voice” as a premium convenience “dialable” service as compared to free VoIP services. As this evolution begins to take hold, prepaid services will begin to look less attractive versus a low-cost post-paid plan with data.”
We’re not too sure it will totally replace prepaid in the very near future, as traditional cells don’t require internet or a computer to be used, while for the most part, VoIP does. There will always be a niche for prepaid cell services, we believe; in fact, this year should see a pretty big jump in prepaid customers as consumers tighten their belts even further in view of a still rather dim job market (in the US anyway).
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There might be a big possibility that many will go for VOIPs rather than cell phones. But personally, I find cellphones better because they are handy and they have amazing features that you cannot find in VOIPs.