US market boosted by prepay
This insight is open to all subscribers and registered users, or available by completing the form.
The US prepaid market saw intense activity during 2009 as growth in contract subscribers dwindled to 1 percent. In contrast, prepaid connections have recorded year-on-year growth of 20 percent. January witnessed the launch of Boost Mobile's (Sprint's prepaid unit) US$50/month 'unlimited' offer that brought them into competition with perceived 'value' operator T-Mobile and regional prepaid specialists MetroPCS and Leap Wireless (the parent of 'Cricket').
In 2008 Sprint’s prepaid connections steadily declined while T-Mobile (prepaid), MetroPCS and Leap Wireless all grew strongly. Less than 12 months later the changed market dynamics were apparent in Q3 2009 results, with Sprint adding 2.1 million prepaid connections over the first three quarters. Despite starting the year with record net additions, MetroPCS and Leap reported weak growth in Q3. Meanwhile, T-Mobile reported its Q3 prepaid net additions fell to only 63,000, from 377,000 a year earlier.
Following the success of Boost’s offer, Sprint announced it would bring a further 5 million prepaid subscribers on board via the acquisition of Virgin Mobile USA (its former MVNO) and adopt a dual prepaid brand approach. Another notable launch was 'Straight Talk' in June by America Movil-owned MVNO Tracfone Wireless, offering a US$45/month unlimited plan running on Verizon's network. T-Mobile USA belatedly unveiled its 'Even More Plus' unlimited offer from US$49.99/month in October.
Given signs that the US economy will remain subdued and with intense competition driving down the cost of unlimited prepaid offers, 2010 will see continuing market growth but individual operators are likely to be squeezed. The nationwide US roll-out of Straight Talk in October - with the distribution strength of Wal-Mart and appeal of Verizon's network - will place further pressure on other players. A long-speculated merger between Leap and MetroPCS would not be a surprise if it finally comes to fruition next year.
(This article is part of a series of predictions for 2010 from the GSMA Intelligence team.)
Report details
US market boosted by prepay
Download the report
Complete the form to get instant access to this content. For easier access in the future, you can register for a free account here.
By submitting this form, you agree that your email address and related activity on the platform will be processed for the purpose of generating and providing the requested report. Your data will be shared with GSMA Intelligence for this purpose. For more information, please see the GSMA Intelligence Privacy Policy.
Report details
US market boosted by prepay
Download the report
Complete the form to get instant access to this content. For easier access in the future, you can register for a free account here.
By submitting this form, you agree that your email address and related activity on the platform will be processed for the purpose of generating and providing the requested report. Your data will be shared with GSMA Intelligence for this purpose. For more information, please see the GSMA Intelligence Privacy Policy.
Related research
The Mobile Economy Canada 2026
Mobile technologies will play a central role in driving Canada’s next phase of economic growth and digital transformation. By 2030, mobile’s contribution is forecast to reach $170 billion, driven by continued adoption of 5G, AI and digital technologies across the economy. Maintaining investment in networks, spectrum and digital infrastructure will be critical to ensuring Canada can fully realise the opportunities of an increasingly connected and AI-driven economy.
Digital Nations 2026: building trusted digital ecosystems in Asia Pacific
Asia Pacific is entering a new phase of digital development. As digital platforms become integral to economic activity, public services, finance, communications and emerging technologies such as AI, trust becomes a critical enabler of digital transformation. This report examines the trust imperative across Asia Pacific, examines the results of the Digital Nations Index in the context of trust, outlines the role of mobile operators as guardians of digital trust, and presents priorities for strengthening the foundations of digital trust for governments, regulators, operators and international cooperation institutions.
Closing the Mobile Connectivity Gap in Developing Asia and the Pacific
Developing Asia Pacific is home to 4.3 billion people – more than half the world’s population. However, 1.2 billion people are not online. Achieving universal connectivity by 2030 will require additional investment of around $184 billion. The economic case for closing this gap is significant. Closing the 4G connectivity gap by 2030 is estimated to deliver a GDP uplift of around $230 billion across Developing Asia Pacific. Universal connectivity would also have several wider socioeconomic benefits such as poverty reduction, improved education and health access, humanitarian assistance and lower carbon emissions. This report presents the findings from a study by GSMA Intelligence on closing the mobile connectivity gap in Developing Asia Pacific, commissioned by the Asian Development Bank.
Authors
How to access this report
Annual subscription: Subscribe to our research modules for comprehensive access to more than 200 reports per year.
Enquire about subscriptionContact our research team
Get in touch with us to find out more about our research topics and analysis.
Contact our research teamMedia
To cite our research, please see our citation policy in our Terms of Use, or contact our Media team for more information.
Learn more- 200 reports a year
- 50 million data points
- Over 350 metrics
How can we support you?
Get in touch
Contact the GSMA Intelligence support team for help with your account, subscriptions, or access to reports and insights.
Newsletter
Subscribe to the GSMA Intelligence newsletter for the latest industry news and insights, delivered to your inbox.
