PHONE CARD INDUSTRY

More than a decade after the prepaid mobile market was first launched in Europe, prepaid services accounted for approximately 60% of the global subscriber base with a total of over 1 billion prepaid customers.

Top 10 Prepaid Markets by Size

1. China
2. Russia
3. Brazil
4. Italy
5. UK
6. Mexico
7. India
8. Philippines
9. Germany
10. Turkey

Prepaid as a Percentage of Overall Mobile Customer Base

1. Africa (91.7%)
2. Latin American/The Caribbean (80.9%)
3. Eastern Europe (73.7%)
4. Middle East (66.5%)
5. Western Europe (59%)
6. Asia Pacific (49.7%)
7. North America (10.6%)

Prepaid Services Other Than Phone Calls:

1. Messaging services (SMS, MMS)
2. Data services (GPRS, i-mode, Push to Talk, WCDMA, CDMA)
3. Special content offerings (sports, music, TV)

The global prepaid base is forecast to reach 1.88 billion customers by 2010.
In a recent industry survey of mobile operators:

1. 50% estimated prepaid will account for 85-100% of all subscribers by 2010.
2. Another 33% estimated prepaid will range between 70-85% of all subscribers.

Why Use Prepaid Cards?

1. No contract or credit check.
2. No monthly bill.
3. Spending can be controlled.
4. Easy to use.
5. Readily available “off the shelf” in retail outlets.

Why Telecoms Offer Prepaid Cards:

1. Lower customer acquisition costs.
2. No bad debt.
3. No billing costs.
4. Cash Up Front.
5. Expand services in countries with limited land line telephone infrastructure.
6. Extending credit can be risky.
7. Many new mobile networks are prepaid only.
   
   

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