The US strategy pays dividends to Carlos Slim’s America Movil – Part 1
Tuesday, August 7th, 2012 2:13:58 by Usman Khalid
As competition stiffens in the pay-as-you-go wireless market, America Movil’s TracFone unit seems a likely survivor of an expected shakeout.
TracFone’s success continues to come in the low end of the wireless market as two other prepaid carriers, MetroPCS Communications and Leap Wireless, target higher-spending smartphone users.
Leap recently began selling Apple’s iPhone. And MetroPCS plans an aggressive push into faster broadband 4G LTE data services this year.
TracFone’s customers, many of whom buy prepaid cards and phones at Wal-Mart Stores, gas stations and other retailers, aren’t big spenders on Internet access, email and data products. They primarily use cellphones to make calls.
TracFone has carved out a niche catering to “voice-only” customers, says Macquarie Capital analyst Kevin Smithen.
TracFone’s customers on average spend only $16 a month on wireless services. MetroPCS and Leap subscribers spend 2.5 times more, roughly $40 per month.
But with 21.34 million U.S. subscribers, TracFone has quietly amassed the most prepaid customers of any carrier in the U.S. Besides prepaid servicers MetroPCS and Leap, it leads the nation’s big four mobile phone companies — Verizon Wireless, AT&T, Sprint Nextel and T-Mobile USA.
“I think TracFone will continue to target voice-only customers at the bottom end of the market,” Smithen said. He says the company can get to 25 million customers without having to cut prices.
Tags: america movil, Carlos Slim, North America, Prepaid, US, wirelessShort URL: https://www.newspakistan.pk/?p=30456
Posted by Usman Khalid
on Aug 7 2012. Filed under Sci-Tech.
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One thing overlooked here is that, with Tracfone, one can have a smartphone and not pay for data. You can use a smartphone with wifi anywhere there is a connection, and that is almost anywhere. This is perfect! This is what many subscribers have been looking for, a way out of the contracts and data charges, but maintain a great smartphone.