Fixed prepaid: struggling to deliver

Table of Contents

Key messages

• Mostly a developing market trend
• Failure to deliver on all of their objectives
• Not a match for prepaid mobile
• Still a valuable option

Fixed prepaid in context

Why fixed prepaid?

• The line rental barrier
• Credit management
• The increasing popularity of prepaid mobile

Rationale for fixed prepaid

Has fixed prepaid delivered?

• Failure to stimulate fixed line growth
• Poor defence against mobile
• Cannibalisation of the fixed post-paid subscriber base
• Successful reduction of bad debt
• Revenues: the importance of pricing

Is fixed prepaid a good idea?

• Not a mobile substitute
• The marginal cost of a new subscriber
• Losing the customer relationship

Messages to service operators

• Be careful with fixed prepaid
• Not to be abandoned altogether
• Price sensibly
• Leverage the benefits of the fixed line
• Continue with efficiency improvements
• Boost customer loyalty

Case studies

• Telkom SA
• Telmex
• Fastweb
• Etisalat
• PLDT