Research Overview
As domestic prepaid wireline long distance demand is declining and international demand is predicted to follow, providers are looking at areas where they can still achieve revenue growth and sustained profitability.
The prepaid long distance industry has remained fairly stable in recent years. The decline in the domestic market has been offset by continual demand from the international sector. However, with the continual decline in pricing and emergence of effective substitutes, the demand for prepaid wireline long distance as a whole is predicted to decline.
This Frost & Sullivan research examines the challenges that prepaid calling card providers face in developing strategies for revenue growth and sustaining profitability in the maturing prepaid long distance market. It also discusses the driving and restraining factors for revenue generation and gives recommendations on how to proceed in this market.
Pricing and convenience make prepaid long distance services more attractive
"Prepaid services remain competitive in terms of pricing in the overall long distance market. This is especially true in the international space. Competition is edging in from VoIP, wireless and 1+ long distance service providers, yet prepaid continues to be the lowest price point in some markets." Prepaid calling card per-minute-pricing remains exceptionally low for the consumer. The movement towards clean cards has allowed for the consumer to realize the low cost-per-minute pricing structure. Also, many consumers find the conveniences of prepaid attractive. Consumers can now purchase prepaid long distance in a wide variety of retail locations and online. The cards are also available in an assortment of denominations and minutes of use. In the international arena, the large migrant population uses prepaid long distance in great quantities. For many, it is their only means to contact family and friends in their home country. Affordable pricing and availability in convenience
stores and bodegas allows immigrants to easily purchase and replenish prepaid calling cards.
Providers are diversifying their product lines and partnerships in order to improve competitive positioning
"Today, prepaid long distance providers compete almost wholly on price. In order to differentiate from both prepaid and industry wide competitors, prepaid providers must diversify and partner." The ability to provide multiple prepaid services in one card or at the very least from one point of service (POS) kiosk is a growth opportunity for prepaid providers. Partnering with retailers and other service providers will also enable growth and increased market share.
Table Of Contents
1. U.S. Prepaid Wireline Long Distance Markets
- 1. Total U.S. Prepaid Wireline Long Distance Market
- 1. Market Overview
- 2. Industry Challenges
- 3. Market Drivers
- 4. Market Restraints
- 5. Market Trends
- 6. Revenue Forecasts
- 7. Competitive Analysis and Market Share Analysis
- 8. Strategic Recommendations
- 9. Frost & Sullivan Awards
2. U.S. Domestic Prepaid Wireline Long Distance Market
- 1. Market Overview
- 2. Industry Challenges
- 3. Market Drivers
- 4. Market Restraints
- 5. Market Trends
- 6. Revenue Forecasts
- 7. Pricing Analysis
3. U.S. International Prepaid Wireline Long Distance Market
- 1. Market Overview
- 2. Industry Challenges
- 3. Market Drivers
- 4. Market Restraints
- 5. Market Trends
- 6. Revenue Forecasts
- 7. Pricing Analysis
List Of Figures
SEGMENT 1
- Total Prepaid Wireline Long Distance Market: Impact of Top Ten Industry Challenges (U.S.), 2005-2011
- Total Prepaid Wireline Long Distance Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- Total Prepaid Wireline Long Distance Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- Total Prepaid Wireline Long Distance Market: Revenue Forecasts (U.S.), 2004-2011
- Total Prepaid Wireline Long Distance Market: Competitive Structure (U.S.), 2004
- Total Prepaid Wireline Long Distance Market: Company Market Share by Minutes of Use (U.S.), 2004
- Domestic Prepaid Wireline Long Distance Market: Demand Forecasts (U.S.), 2004-2011
- Domestic Prepaid Wireline Long Distance Market: Impact of Top Industry Challenges (U.S.), 2005-2011
- Domestic Prepaid Wireline Long Distance Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- Domestic Prepaid Wireline Long Distance Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- Domestic Prepaid Wireline Long Distance Market: Revenue Forecasts (U.S.), 2004-2011
- Domestic Prepaid Wireline Long Distance Market: Average Price per Minute Forecasts (U.S.), 2004-2011
- International Prepaid Wireline Long Distance Market: Demand Forecasts (U.S.), 2004-2011
- International Prepaid Wireline Long Distance Market: Estimated Minutes of Use Terminating by Region and Country (U.S.), 2004
- International Prepaid Wireline Long Distance Market: Impact of Top Industry Challenges (U.S.), 2005-2011
- International Prepaid Wireline Long Distance Market: Market Drivers Ranked in Order of Impact (U.S.), 2005-2011
- International Prepaid Wireline Long Distance Market: Market Restraints Ranked in Order of Impact (U.S.), 2005-2011
- International Prepaid Wireline Long Distance Market: Revenue Forecasts (U.S.), 2004-2011
- International Prepaid Wireline Long Distance Market: Price per Minute Forecasts (U.S.), 2004-2011
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