Fixed prepaid: struggling to deliver: Industry Research Report

Fixed prepaid: struggling to deliver

Published Date: August 2006

Published By: Ovum Plc

Page Count: 22

Order Code: R464-169

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Description

Table of Contents

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Key messages

Mostly a developing market trend

Failure to deliver on all of their objectives

Not a match for prepaid mobile

Still a valuable option

Fixed prepaid in context

Why fixed prepaid?

The line rental barrier

Credit management

The increasing popularity of prepaid mobile

Rationale for fixed prepaid

Has fixed prepaid delivered?

Failure to stimulate fixed line growth

Poor defence against mobile

Cannibalisation of the fixed post-paid subscriber base

Successful reduction of bad debt

Revenues: the importance of pricing

Is fixed prepaid a good idea?

Not a mobile substitute

The marginal cost of a new subscriber

Losing the customer relationship

Messages to service operators

Be careful with fixed prepaid

Not to be abandoned altogether

Price sensibly

Leverage the benefits of the fixed line

Continue with efficiency improvements

Boost customer loyalty

Case studies

Telkom SA

Telmex

Fastweb

Etisalat

PLDT

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