The Prepaid Press - March 2009 - (Page 14)

PREPAID TELECOM March 15 · 2009 - 14 Retail Payments in Prepaid Turn Sluggish Delays Derail Service Providers and Distributors from page 1 payments of the Universal Service Fund (USF), Telecommunication Relay Service Fund (TRS), The North American Numbering Plan (NANP), and Local Number Portability (LNP) fees as a result of slowed retail payments. While retailers and distributors aren’t fined when they pay their vendors late, service providers are heavily fined when they miss a regulatory fee deadline. The problem becomes particularly severe when providers are shorted and then are unable to meet regulatory fees. “We haven’t run into that problem yet, but we know that it is coming,” Medina confirmed. Fedor Smith of Atlantic-ACM said he has heard of providers and distributors changing the way they work with retailers to prevent being shorted. “Some distributors and providers have forced their vendors to go prepaid rather than shelling out all these minutes,” Smith said, adding that he doesn’t have hard data on the changes, but has heard anecdotal evidence. “Now top-up is being done electronically so the physical cards have no value. Rather than having a credit line, they pay up front and then sell against it.” For its part, Prasan has already taken drastic measures with the most problematic retailers. “We have had to drop 80 to 100 retail spots in the past month,” Pajaria said. “We’ve seen this trouble with all kinds of stores, but mainly the dollar stores and the bodegas.” Medina hasn’t dropped retailers yet, but his company may have to soon enough. “It’s going to get to the point where it’s going to cost more to have product in a retail store than it’s worth actually being there,” Medina said. “The overhead of getting there and having the person drive to the area costs more than the results.” Medina said he won’t cut all struggling stores, but only those that perform the poorest. Prasan will also take a number of other measures to lessen the delayed payment problem. “We’re using a microscope and being extremely careful who we give credit to. We’re also stricter on bounced checks,” Pajaria said. “We get cash more now and we will not deliver without payment. Previously you would say ‘Ok,’ but now you can’t.” In many ways, the economy is forcing prepaid companies to function by the same rules that other parts of the communications world have long had to follow. In many ways, the economy is forcing prepaid companies to function by the same rules that other parts of the communications world have long had to follow. “You have to concentrate on receivables and sales. You have to have good sales rather than bake sales,” Pajaria quipped. “If you have good apples in the basket you have to make sure you take care of that basket properly.” While smaller companies are clearly struggling, some larger prepaid companies have not necessarily seen slow payments. Sophia Vail of Telecom Colombia says the company has not had the problem, but that it is protected because it works with only a couple of very large distributors. “We only sell to two or three big guys that pay our bills on time,” Vail said. “But I have heard that smaller distributors are slow in paying now.” That said, while Telecom Colombia has not experienced delayed payments, it has seen slowed business overall due to the economy. In response, the company is researching ways to turn new business. “We’re trying to expand to other states and come out with new prepaid product,” Vail said. “We are also trying to come up with ideas to do more promotions and raffles.” New Prepaid Calling Plans From Verizon Wireless Unlimited Plans Give Customers More Options Moderate wireless customers on a Prepaid Plus plan enjoy unlimited Mobile to Mobile calling with more than 80 million Verizon Wireless subscribers, as well as Unlimited Nights & Weekends for $1.99 daily access only on the days they use it. It is $0.05 per each additional minute for all other calls and for each text message sent and received. “These plans match the needs of today’s prepaid user,” said Jeffrey Dietel, vice president -- marketing operations for Verizon Wireless. “Customers can select the plan, the text messaging feature and match it with just about any Verizon Wireless phone. Essentially, they are designing the service that works best for them and their wireless budgets.” Text, picture and video messaging bundles are available to all Prepaid customers with unlimited messaging for $20 per month. For customers who text message to mostly other Verizon Wireless customers, a $10 unlimited in-network option is available that also includes an additional 250 messages to anyone on any network. May 4-7, 2009 | Ernest N. Morial Convention Center | New Orleans, LA Enabling Secure Identity and Payments in a Mobile World Register by April 3 and Receive $200 Off Already Discounted Early BirdRates. Use Code PRE. Why Wait? A Deal Like this Won’t Last! If you just need to cruise the exhibit hall. Take advantage of our free exhibit hall pass. Use Code: PREE. EXCLUSIVE ONE TIME OFFER: SIX TIMELY TRACKS: TRACK A: Identiﬁcation and Security TRACK B: Payments and Applications TRACK C: Mobile and NFC TRACK D: Emerging Technology and Innovation TRACK E: Healthcare TRACK F: Latin America All New Ways to Learn and Network: Announcing CTST REPORT: Expect More, Know More, Be More To register contact Arthur Glavas at 212.803.6063 or Glen VanDusen at 212.803.6072. For information on Sponsorship & Exhibit Opportunities contact Natalie Sharp at natalie.sharp@sourcemedia.com or 212.803.6064. www.ctst.com BASKING RIDGE, NJ (February 11, 2009) Verizon Wireless has announced two new Prepaid calling plans, Prepaid Unlimited Talk and Prepaid Basic, to provide customers with more options for customizing their wireless service to match their lifestyles. In addition, the company said it will automatically update all Verizon Wireless customers currently on the Prepaid Plus plan with Unlimited Weekend Minutes. The new Prepaid Unlimited Talk plan is aimed at heavy wireless users who want to enjoy many of the same service options enjoyed by customers who sign annual contracts, but without the commitment of a long-term contract. This plan gives customers unlimited calling to anyone on any network across the U.S. for only $3.99 daily access, charged only on the days calls are made and received. All text messages on this plan are $0.01 per message sent and received. The new Prepaid Basic plan is designed for the infrequent wireless user. With this plan, there is no daily access fee -- customers simply pay $0.25 per minute of talk and $0.20 per text message sent and received. Small-Business Owners Verizon says the flexibility and variety of Prepaid calling plans make them a great option for smallbusiness owners who want to provide a wireless phone to employees but don’t want to set up a long-term contract or monitor employees’ monthly minutes. Business owners can simply put dollars in an employee’s prepaid account and replenish the funds as necessary. Soruce: Verizon Wireless (www.verizonwireless.com) http://www.ctst.com http://www.ctst.com http://www.ctst.com http://www.verizonwireless.com

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

The Prepaid Press - March 2009 Contents The Retske Report: A Disconnect in Connecticut Regulatory Rundown 5 Minutes With Brooks Smith, CEO of InComm TracFone Launches SafeLink Wireless in NY iPayStation Enables International Top-Up Comverse Launches Next-Generation IMS Solution Prepaid Companies Agree to Pay $2.25 Million Prepaid Telecom in Brief Boost Mobile Reintroduces Itself Virgin Mobile Announces New Branding Campaign The State of Prepaid Technology: Becoming a Virtual Operator Prepaid Wireless Roundup New Prepaid Calling Plans from Verizon Wireless The Legal Line Jobless Benefit Debit Card Usage Debated InsurCard Provides Catastrophic Relief Solution Metavante, Monitise Americas Launch Text Banking TransCard Provides Personal Financial Management Walmart to Help Americans Manage Finances Payments and Processing in Brief Prepaid Consumer and Employee/Partner Incentives CashStar Launches Interactive Gift Card Platform VIPGift Continues Sales Expansion Pentagon Installs Unique Card Personalization Line Digital Promotions Grow in Popularity The Ultimate Gift Card Network Retail Sales Show Unexpected Rebound Smart Transaction Systems Selects Hypercom GiftCards.com Acquires Swapagift.com InComm Gaming Opportunities on the Rise VCT Adds Equipment to New Jersey Facility Gift Cards and Promotions in Brief Our Advertisers Contact Us

The Prepaid Press - March 2009

For optimal viewing of this digital publication, please enable JavaScript and then refresh the page. If you would like to try to load the digital publication without using Flash Player detection, please click here.