Tuesday, 11 September 2018 19:51

Pre-paid US carriers to 'launch more promotional offers during 2018' than 2016 or 2017

See larger version of this chart in article below See larger version of this chart in article below

Competition among US pre-paid mobile service providers has once again heated up in 2018, despite the top five pre-paid telcos in the US making more promotional offers in 2016 than 2017.

However, according to the research, data and analytical gurus at GlobalData, "increased marketing activity has set the stage for the overall number of promotional offers in the pre-paid segment to outpace 2016’s total by the end of Q3 2018.

"Prepaid service promotions tracked by GlobalData include special offers that are not exclusive to a device and include extensions to a promotion, such as pushing back an offer’s expiration date," the company said.

"Examples of service promotions are when a carrier offers a certain number of lines at a discounted price or gives away the first month of service free to customers signing up for a specific price plan."

According to Jamie Huff, lead analyst: Global Telecom Consumer Pricing and Promotions at GlobalData, “Through the second quarter of 2018, TracFone and Sprint were the most active service providers in terms of pre-paid service promotions.

"This count includes each company’s secondary brands, such as TracFone’s StraightTalk, Net10, Simple Mobile and others, as well as Sprint’s Boost Mobile and Virgin Mobile pre-paid brands.

“Verizon, which was quite active on the pre-paid service promotions front in 2016, stayed out of the fray this year through Q2. Nonetheless, our syndicated research indicates that the number of promotional offers from all of the largest carriers combined will top 2017’s full-year results sometime this quarter."

Huff added, “Carriers continue to streamline their prepaid offerings with fewer and simplified plans. Mobile hotspot access, streaming and network priority limits are becoming competitive differentiators.

“In addition, increased high-speed data allotments continue to be a theme as competitors try to out-compete one another. Unlike postpaid carriers who have primarily moved to truly unlimited plans, prepaid carriers still see the need for tiered plans with varying allotments of high-speed data.”

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Alex Zaharov-Reutt

One of Australia’s best-known technology journalists and consumer tech experts, Alex has appeared in his capacity as technology expert on all of Australia’s free-to-air and pay TV networks on all the major news and current affairs programs, on commercial and public radio, and technology, lifestyle and reality TV shows. Visit Alex at Twitter here.

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