Why the interest in prepaid? It boils down to three main influences—advertising, price, and quality.
Prepaid carriers have recently invested heavily in television advertisement campaigns during major sporting events—such as the NFL playoffs and Super Bowl—which charge high premiums for air time due to their large reach. Consumers are learning that prepaid carriers run on major nationwide networks, providing coverage that is comparable to the big four carriers. In addition, prepaid carriers are now offering high quality handset devices that previously were only available for consumers willing to sign a contract, which also is attracting more subscribers. ShareTracker believes the segment should only continue to grow.
Check back for our second quarter results to see if this trend holds true.