Compass Intelligence Research on the Prepaid Wireless Market

 Compass Intelligence recently surveyed 10,011 mobile phone users regarding their plans to purchase new wireless devices.  Respondents were asked to indicate how many new devices would be post-paid and how many would be prepaid.  When adding a new device, 22% of respondents indicate they will add prepaid mobile. The most likely prepaid buyers in 2H09 will be those users with multiple devices. Business decision-makers in businesses of all sizes want more contract flexibility and are turning towards prepaid to not only lower short-term costs, but more importantly, lower their risk. 

Other highlights of the research are provided below:

• Enterprise Businesses account for nearly two-thirds (62.9%) of business wireless subscribers in 2009, and small businesses account for just over one-third of subscribers (37.1%). 
• While AT&T fairs well among the total wireless subscribers, the company’s strong hold is in smart phones and mobile broadband.
• Sprint’s market share among small company smart phone users (23%) is nearly twice that of total wireless subscribers (12%).
• Among the top perceptions associated with T-Mobile and Sprint, two-thirds are negative.
• The fourth quarter of 2008 and the first quarter of 2009 saw the strongest growth in this market with an increase of more than 2 million subscribers each quarter.  
• The second quarter of 2009 experienced slower growth, with an increase of approximately 1.3 million, or 3%, over the previous quarter. The year over year growth jumps from mid single digit to 17%.