$11 Billion in Prepaid Telecom Revenues by 2003!RARITAN, NJ--(BUSINESS WIRE)--April 6, 1999--A new report from The PELORUS pe·lo·rus n. pl. pe·lo·rus·es A fixed compass card on which bearings relative to a ship's heading are taken. [Origin unknown.] Group entitled "Prepaid pre·pay tr.v. pre·paid, pre·pay·ing, pre·pays To pay or pay for beforehand. pre·pay  ment n. Telecommunication Services" characterizes prepaid telecom as a hotbed hotbed, low, glass-covered frame structure for starting tender plants. It differs from a cold frame only in that the soil is heated—either artificially as by underground electric wiring or steampipes, or naturally with partially fermented stable manure, which of opportunity. Each component of prepaid telecom - prepaid calling cards, prepaid wireless, prepaid wireline, and prepaid Internet telephony Another term for IP telephony and VoIP. In the late 1990s, some people made a distinction between Internet Telephony and VoIP: Internet telephony referred to voice over the public Internet, while VoIP referred to voice over private IP networks. - 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 Verb 1. redefine - give a new or different definition to; "She redefined his duties"define, delimit, delimitate, delineate, specify - determine the essential quality of 2. 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 A niche market also known as a target market is a focused, targetable portion (subset) of a market sector. By definition, then, a business that focuses on a niche market is addressing a need for a product or service that is not being addressed by mainstream providers. . Today, they appeal to a variety of markets including college students, travelers, people on the move, businesses, and charitable organizations This article is about charitable organizations. For other uses of the word charity, see Charity. A charitable organization (also known as a charity) is an organization with charitable purposes only. . 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 |
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