Abstract
Much of the effort in designing innovative packages has historically been
focused on postpay customers. The higher levels of revenue generated by this
group were seen to be more likely to generate a return on the investment
needed. However, in saturated markets where MNOs still need to drive growth
and in developing markets where those with the resources to take out a postpay
contract are the limiting factor, network operators are increasingly turning
to the potential offered by innovative prepay offers to deliver the results
stakeholders are looking for. The marginal costs of extending postpay
innovation into the prepay environment means that lower revenues per user can
still contribute to EBITDA growth. However, not all attempts at prepay
innovation have proven successful and, in some cases, a failure to engage the
customer base has had significant negative consequences for the service
providers concerned.
This report examines the development of innovation in prepay offers,
identifies successes and failures and the reasons for them and concludes with
seven concrete recommendations for operators to help them ensure their efforts
to exploit this area achieve the maximum return.
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