SCOTTSDALE, Ariz., Jan. 13 /PRNewswire/ -- The latest research from Compass Intelligence shows that "business" prepaid is fast becoming a growth market. Compass Intelligence expects to see continued growth of Business Prepaid subscribers of roughly 10% over the next 3 years. "Business" prepaid subscribers are individuals that receive prepaid devices (phones, push-to-talk or mobile broadband) from their company and the company pays the fees. Estimated to represent approximately 5 million of the 57 million prepaid subscribers by the end of 2010, business users make up a small but interesting segment of the prepaid category and a significant portion of the overall wireless market.
"The rise of prepaid company-provided devices is a trend of at least a year old, according to our research. Roughly 60% of decision-makers offering employees prepaid devices say they have done so for one year or more," says Kneko Burney, Chief Strategist of Compass Intelligence. Mrs. Burney adds, "The real finding here is that the Corporate Liable segment of the overall wireless market (representing roughly 14% of all wireless subscribers) is expected to change as a result of this increase in business prepaid -- contracts will need to become more flexible and carriers will be wise to find a way to accommodate business needs for 'prepaid-like' options in contracts, particularly for mobile broadband and possibly even push-to-talk."
Other key findings include:
- Decision-makers are most likely to provide prepaid devices to "sales people," "executives/business owners" and "IT or Telecom Staff."
- More than 1100 Decision-makers said the primary reason that prepaid is attractive is because it is "less of a hassle compared to a monthly contract."
- In 2010, business decision-makers are quite bullish about prepaid Mobile Broadband -- with many of them expecting to purchase nearly as many prepaid mobile broadband devices as prepaid mobile phones in 2010.
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SOURCE Compass Intelligence