Cell Phone Wealth Redistribution
Cell Phone Wealth Shifts From Cellular Post-pay to Pre-paid Plans
How can a cell phone dealer capture shares of this multi-billion dollar cell phone wealth redistribution opportunity?
Over the next 5-years, cell phone wealth will continue to shift from the long term contract cell plans to the pay-as-you go pre-paid types.
This shift in wealth will lead to new opportunities for some players in the wireless industry.
In order to appreciate this fact, we’ll compare two different markets.
{But before hand, listen to the video below from a 31 year telecommunications retiree who talks about plans that corporate executives were discussing back in 2003 about the future of cell phones.}
Comparing cell phone market distribution between Europe and North America
Looking at the numbers below, we can see that the cell phone wealth distribution differs between these two markets.
- In Europe, 80% of the mobile cell market is pre-paid (flat rate)
- Only 20% in the North American market is pre-paid.
There are some 300 million current subscribers in the USA. And projections are that more of these clients will change to pre-paid services as their contracts come to an end. As this happens, billions of dollars will be up for grabs as competition and economic hard ships continue to drive this market dynamic.
This cell phone wealth transition boom will happen with or without you!
Two survey results conducted by PEW in 2006 supports cell phone wealth re-distribution:
TOTAL WHO HAVE A CELL PHONE
A total of 4,274 participants were surveyed. Of those, 2,334 had cell phones which equates 55% of this sample group. This was four years ago. Obviously, the numbers are higher now and trending upward.
Key survey question: I HAVE OCCASIONALLY BEEN SHOCKED AT THE SIZE OF MY MONTHLY CELL PHONE BILL.
This question applied to 1,539 of the participants and 41.7% of them stated yes to this survey question.
Conclusion: Once my post-pay contract ends, I’m changing to pre-paid services where I know what bill will be and yet have the same level of service and consumer choice.
Cell phone wealth redistribution is here and will continue for at least the next five years.
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