A Thing
The Green SheetGreen Sheet

Tuesday, October 8, 2013

Target enters prepaid wireless fray

Discount chain store giant Target Corp. is taking on its rival Wal-Mart Stores Inc. with a prepaid mobile phone scheme called Brightspot. The move sets up Target to partake in the growing prepaid wireless market, which is expected to surpass $25 billion in 2015.

The service plan for Brightspot starts at $35 per month for unlimited talk and text, while Wal-Mart offers a comparable plan of $45 on its Straight Talk prepaid mobile program, but with unlimited data added into the mix. As an incentive to keep customers using the plan, Target will offer customers a $25 gift card for every six months they remain on the plan, which works out to a savings of approximately $4.17 per month. Additionally, users of Target's private-label REDcard will receive a 5 percent discount off the Brightspot plan.

In a report issued April 2011, Boston-based consultancy Atlantic-ACM said the prepaid telecom market would reach $25.3 billion by 2015, up from $19.3 billion in 2010. "From the customer's perspective, prepaid service and feature offerings are looking increasingly like postpaid offerings," said Atlantic-ACM President Fedor Smith. "As a result, postpaid subscribers are increasingly being drawn to prepaid services by competitive rates and the absence of long-term contracts."

In the 10th Annual U.S. Closed-Loop Prepaid Market Assessment, released in August 2013, Mercator Advisory Group said that the prepaid long distance market is in decline as consumers turn away from landlines and toward cellular phones. end of article

Editor's Note:

The Green Sheet Inc. is now a proud affiliate of Bankcard Life, a premier community that provides industry-leading training and resources for payment professionals. Click here for more information.

Notice to readers: These are archived articles. Contact names or information may be out of date. We regret any inconvenience.

Facebook
Twitter
LinkedIn
2024 2023 2022 2021 2020 2019 2018 2017 2016 2015 2014 2013 2012 2011 2010 2009 2008 2007
A Thing