As end user awareness of prepaid services rises throughout the United States, providers of prepaid long distance services will see significant gains. Consumers are demonstrating their increased confidence that prepaid services will be delivered as advertised. Telecom companies with a strong brand presence are garnering the greatest returns from heightened public awareness, as more individuals use prepaid solutions to fulfill their mobile long distance needs and give prepaid cards as gifts to encourage staying in touch.

This Frost & Sullivan research analyzes the prepaid long distance service markets for tier one service providers and tier two companies. It examines demand trends and assesses their impact on the marketplace. By tracking changes according to telephony platform and presenting expert forecasts, this study provides its users with a comprehensive overview of this emerging industry.

Retail Channels Offer Important Promotion and Distribution Opportunities

"Prepaid card calling will continue to gain acceptance as service providers increase their presence in mass retail markets," says the study's author. Placing prepaid cards in retail locations boosts awareness and gives providers important distribution channels. Leading participants already have key placement agreements with major retailers as well as the U.S. Post Office.

"While the second tier market participants have been concentrating on ethnic and inter-city merchandising, tier one providers have driven volume up through partnerships with mass merchandisers," says the author. This research evaluates competitive tactics and highlights winning strategies, helping your company develop an effective business plan.

Rapid Adoption of Wireless Technologies Could Threaten Prepaid Growth

"Wireless services are a direct substitute for card calling because both services allow consumers to place calls from various locations," says the author. With rates for wireless plans dropping, prepaid service providers could lose potential customers to wireless solutions.

Wireless providers are also offering a range of value-added services and incentives, including wireless Internet access, e-mail retrieval, voice mail, and even prepaid wireless services, all of which could lure users away from prepaid cards. With its in-depth discussions of the challenges that participants face, this study will enable your firm to anticipate and overcome any hurdles that may lay ahead.