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Prepaid Wireless Tracker #52, Oct 2012 - iPhone 5 Available On Cricket!
October 01, 2012

Prepaid Wireless Tracker - October 2012 Issue #52

Hi,

Prepaid wireless is a growing and truly exciting industry.  At Prepaid-Wireless-Guide.com I try to provide you with in-depth information that isn't readily available anywhere else.  Its content is original, and created from firsthand experience working in the prepaid wireless industry.

This monthly email provides you with a quick glance at what's in the news so that you can easily keep informed.  I believe in brief, to-the-point summaries/commentary so that you can move onto other tasks in your day.  Each snippet includes a link to the original story should you be interested in the full details.

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Cricket Gets iPhone 5
The VAR Guy
On September 28th, Cricket began selling the iPhone 5 for $499.99.  Despite the high cost of the phone, customers can still save money over the period of a standard postpaid contract due to the lower monthly plan cost.  Whether customer are willing and able to fork over that kind of money, however, is still under question.  I expect that its iPhone 4 sales were lack luster as the world was already anticipating the launch of the 5 by the time Cricket got the 4.  This next six months will really be telling as to whether or not there's a real pent up demand for prepaid iPhones (at full price), or whether MVNOs with BYOD (Bring Your Own Device) programs that support the iPhone is really where the action will be (ex. Simple Mobile, T-Mobile, etc.).

T-Mobile And Walmart Partnering On $299 Prepaid Samsung Galaxy S2
Android Central
For $299 you'll be able to pickup a highend prepaid smartphone as Walmart continues to be aggressive with its no contract offers.  Partnering with T-Mobile makes sense, as T-Mobile has been making a massive play in the prepaid space ever since its acquisition by AT&T fell through.  Unfortunately, it's not the latest Galaxy S3, which would have taken prepaid to the state-of-the-art.  So while prepaid continues to grow in the mainstream, its not quite on par with devices available on postpaid, though it is getting very close (and the iPhone has helped)!

MetroPCS Claims One Million LTE Customers
Wireless Week
Keep in mind that more than providing faster data speeds, carriers want to implement LTE due to the fact that it provides more efficient use of spectrum, which is a limited (and expensive!) resource.  So when you're reading about LTE deployments and promotions to migrate, think about the voice traffic that carriers are looking to offload from legacy CDMA networks.  We should begin to see carriers offering incentives to get people to upgrade to LTE phones.

UltraMobile MVNO To Launch On T-Mobile

FierceWireless
Here we go; another MVNO!  This article, nor anything else I've read about UltraMobile clearly indicates what their value proposition will be.  What niche are they going after?  What's unique to their products and services?  If all they're doing is going after a price play, I don't predict good prospects for the company.  To be honest, I don't understand the appeal of the MVNO market as a provider; it's simply way to crowded, and more often than not tends to add confusion to the customer selection process, not to mention the often underestimated cost of running such a business.  Anyway, time will tell!

Moody's Upgrades Cricket Stock
NASDAQ

The upgrade is largely due to the loan Cricket secured, which is great for cash flow, however, truly telling just how out of touch with real business analysts are.  Yes, cash flow is important, however, it doesn't change the fundamental business products, process, and strategies, which are the true signs of whether a business will succeed or not.  Getting a loan is about as superficial an element as analysts can get.  I continue to be disappointed with how uneducated these highly intelligent analysts truly are; it's sad.


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PrepaidWirelessGuy

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