The Prepaid Press - January 2009 - (Page 17)

PREPAID TELECOM Dec. 2008 / Jan. 2009 - 17 Millions Could Cut Cell Phone Bills in Half Prepaid Cell Option and Other Recommendations from TRAC Expert times and are looking for ways to make big cuts in their budgets. Even so, some people think of themselves as so dependent on their cell services that they are more likely to scrimp on food than they are to curb their cell phone spending.” It’s true. Forbes.com is reporting that cell phone customers are responding to the current economic downturn by dining out less frequently (88 percent), holding off on major purchases such as cars, electronic and furniture (79 percent), driving less (57 percent) and even buying fewer groceries (41 percent). But less than a third (32 percent) are cutting back on their cell phone spending in response to tough times. Simon said that makes no sense at all when you can respond to the current economic downturn by getting essentially the same cell phone service for significantly less money. WASHINGTON, D.C. (November 13, 2008) As the economy worsens and Americans feel growing pressure to cut family budgets, the good news is that millions of U.S. consumers could slash up to half of their monthly cell phone bills by taking a few simple cost-saving steps. The most dramatic savings are likely to come from switching to prepaid services and reducing the total number of cell phones in a family, according to Sam Simon, founder and chairman of the nonprofit Telecommunications Research & Action Center (TRAC). Simon said: “There are a lot of ways to save on your cell phone -- and regular phone -- bills. Many consumers today are facing desperate switch to a prepaid service where you buy a phone for as little as $15 and pay only for the minutes you use, without any contract or cancellation fee. While prepaid cell phones are not for the most intensive wireless users, they are well suited for the millions of typical cell phones users talking 200 minutes or less a month. If you have more than once cell phone in the family, you can experiment by substituting a pre-paid cell phone for at least one post-paid cell phone. How many consumers might save in this way? According to 2008 data from the Cellular Telephone Industry Association (CTIA), there are 262 million cell phone subscribers in the United States. Of that group, only 16.9 percent are prepaid cell phone users. The fewer than one in five Americans using this lower-cost option is considerably under the 37-89 percent of the cell-phone market that prepaid services account for in other countries, including most developed nations, according to the CTIA. 2. Determine if you are a good candidate for “cutting the cord.” One way to really slash your overall telecommunications spending is to dump your oldfashioned landline phone in favor only using a cell phone. And then switch to a pre-paid phone for your wireless service. It’s not for everyone, but 16 percent of Americans already have made this leap into “wireless only” cell phone service, according to CTIA data. This is a good option for people who make relatively few calls and do not have children at home. It is a great way to save a lot of money if you or your family is in financial crisis: You might be spending a combined $100 or more on landline and contract-based cell phone services and could replace that with $10 a month in carefully used pre-paid cell phone minutes. 3. Get on the right plan and be smart about using your minutes. Give up on frills, reduce your total minutes and move down to a more basic rate plan. This might mean putting a block on texting from phones, limiting use and putting your kids on a budget. Be creative in managing the minutes and features between your land line and your cell service. For example, if your land line has unlimited long distance you might consider using it more and reducing your minutes on your cell plan. Or vice versa, going to a more basic landline plan and doing your long distance calling on your wireless plan. Consider switching to a lower-cost cell phone plan, and then shifting your calling to night and week-end times that don’t burn plan minutes. 4. When it comes to cell phones, don’t buy a Ferrari when all you need is Honda Civic. An independent study by Nielsen Mobile suggests that fewer than one in five cell phone users (18 percent) have downloaded ringtones so far this year. Only about one in 10 (11 percent) downloaded software. That means many consumers are paying to use a phone that is more feature-intensive than they actually need. Keep in mind that most cell phones with all those extra bells and whistles involve either higher monthly base bills or add-on fees that can send your cell phone bill needlessly soaring well over $50-$60 a month. Don’t waste money on a cell phone that can do more than you will ever want or need it to do! 5. Don’t let other people “steal” your minutes. Most telemarketing calls are made today to traditional landline phones. However, as more and more people cut the cord (or even just start supplying cell phone numbers to store clerks and in filling out online forms), junk cell phone calls will rise. Make sure to sign up all of your phone numbers - including your cell -- for the Do Not Call list at https:// www.donotcall.gov/ or call 1-888-382-1222 from the phone number you wish to register. Source: The Telecommunications Research & Action Center (http://www.trac.org/consumer) The Penny Pincher’s Guide to Slashing Cell Phone Bills Here are five tips from Telecommunications Research & Action Center (listed in order of the largest to smallest possible savings): 1. Get rid of expensive cell phone fees by switching all or some of your cell phones to prepaid cell service. The average “postpaid” (contract-based) cell phone user pays about $50 a month to be locked into a long-term contract and also faces the risk of steep overage charges of up to 45 cents a minute and painful early-cancellation fees that can cost $150-$200. If possible without incurring a penalty, New Virgin Poll Reveals Buying Habits Consumers Cut Cars, Clothes and Concerts Before Cell Phones WARREN, NJ (November 20, 2008) In a tough economy, Americans are more likely to cut back on entertainment, food and clothing before they change the way they use their cell phones, according to a recent Virgin Mobile USA customer poll. Economic concerns have 87 percent of customers changing spending overall, as nearly half claim that they don’t have enough money to cover day-to-day expenses. When asked to prioritize expenses, an overwhelming amount of those surveyed said they would cut back on leisure activities such as dining out (88 percent), entertainment (86 percent) and shopping (82 percent). The poll also found that more expensive purchases, like cars, furniture, electronics (79 percent) and vacations (71 percent) are being delayed indefinitely. The poll indicates that cell phones have become a necessity for most rather than a luxury, with just 32 percent planning to spend less on their mobile phone service, before cutting cable/satellite costs (25 percent), and delaying payment on other bills (18 percent) and rent/ mortgage (7 percent). “People need to be able to adjust spending in a tough economy,” said Bob Stohrer, Chief Marketing Officer for Virgin Mobile USA, “and the ability to be change spending levels without penalty is one of the benefits of prepaid wireless. With cell phones remaining a ‘must have’ for most, we expect more people will be drawn to the flexibility and value of prepaid offerings.” Despite concerns about the broader economy and their own economic situations, 73 percent of customers surveyed feel that Virgin Mobile USA saves them money. Customers are benefiting from cost savers like Virgin Mobile USA’s no long-term contract plans and programs like Sugar Mama, which allows customers to earn free air time minutes in exchange for watching ads.Currently, nearly one million of the carrier’s customers utilize Sugar Mama and 66 percent polled expressed interest in the program. About the Survey The survey was conducted online within the United States by Vision Critical via Virgin Mobile USA customer panel of 750 adults. The results of the survey are reliable with a +/- 4 percent margin of error. Summary of Survey Results: • 87 percent say they have made changes in the way they spend money overall. • 47 percent say they sometimes don’t have enough money to cover day-to-day expenses. • 57 percent indicate they have changed the way they use their Virgin Mobile USA phone to save money, with 35 percent of respondents using fewer calling minutes in the past three months and 19 percent texting more and calling less in the past few months. • 51 percent feel the current economic situation makes Virgin Mobile USA’s no long-term contract service more valuable. • 66 percent are more interested in programs like Sugar Mama, which allows customers to earn free air time minutes in exchange for watching ads. Almost a third of Virgin Mobile USA’s customers currently use it. “Customers say when money is limited, I will”: • Eat out less: 88 percent • Spend less on entertainment: 86 percent • Spend less on clothes: 82 percent • Delay major purchases (cars, furniture, electronics): 79 percent • Cancel or spend less on vacations: 71 percent • Drive less: 57 percent • Spend less on food and groceries: 41 percent • Spend less on mobile phone service: 32 percent • Spend less on cable or satellite: 25 percent • Delay paying other bills: 18 percent • Delay paying rent or mortgage: 7 percent Source: Virgin Mobile USA (www.virginmobileusa.com) http://www.Forbes.com https://www.donotcall.gov/ https://www.donotcall.gov/ http://www.trac.org/consumer http://www.marketingteam.us http://www.virginmobileusa.com

Table of Contents Feed for the Digital Edition of The Prepaid Press - January 2009

The Prepaid Press - January 2009 Economic Crisis Sharpens Focus on Stored Value Cards Industry Veterans Weigh In on 2009 Prepaid Opportunities Contents From the Publisher: Ready for Change? The Prepaid Press Thanks its Editorial Advisory Board Regulatory Rundown 2008 Milestones Prepaid Wireless Providers Capitalize on Economic Downturn Prepaid Telecom in Brief APCC Services Settles With Calling Card Providers Boost Mobile Offers All-in-One Prepaid Package SonarTel Prepaid Customers Can Use Accounts in More Countries BillSoft Selected by Integra Telecom Pingo Adds PC “SoftPhone” Calling kajeet, the Cell Phone Service for Kids, Wins Award Prepaid Wireless Roundup The State of Prepaid Technology: Wholesalers & White Label Services New Millennium Releases Wireless Survey Results 5 Minutes With Paul Amick, EVP & Co-Founder, PhoenixSoft Millions Could Cut Cell Phone Bills in Half New Virgin Poll Reveals Buying Habits The Legal Line BioPay Expands Offering for Underbanked IDT to Sell European Prepaid Payment Business iPayStation Launches Network for Distributor Stored Value Solutions Appoints New VP Cellular South Offers Mobile Banking for Regions Bank Javelin Research: Processor Important in Prepaid MiCash Announces New Prepaid Debit Card Monitise and eCommLink Partner Platamovil Selects PhoenixSoft’s Cirrus Softswitch Prepaid Market Forecasts to 2011 Payments & Processing in Brief Prepaid 101: Gift Cards SCA’s PrizeSuite Enables Promotions MT&L Offers Gift Card Removal and Destruction Heartland Payment Systems Acquires Chockstone Amex and Rymax Offer Gift Cards TransCard Announces Corporate Gift Card Website Gift Cards & Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - January 2009

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