Sprint "is doubling down on subprime as wireless runs out of growing room."
"With about four out of every five people in the U.S. owning cellphones, observers view the prepaid market as an untapped source of sales growth, and alternately as a trove of unreliable customers. Prepaid phone plans attract people who don't want contracts or have subprime credit quality or in many cases people under age 18."
"While it is a growing market amid a slowing wireless industry, the number of deadbeats and defectors has always been a problem for telcos."
"And, as we've seen in the recent mortgage meltdown, pursuing a subprime customer base as an target for growth, hasn't really been all that rewarding."
Isn't the whole idea behind "pre-paid" getting your money up-front. This being said, dead-beats & defectors alike shouldn't really affect this pre-paid sector. One cannot compare this sector to the sub-prime mortgage sector. If anything, pre-paid is a step in the right direction away from the actions that caused the sub-prime mortgage crisis, namely lenders not requiring enough money up front (i.e. "pre-paid" so to speak)....IMO. Am I wrong in thinking this?
I don't know whether you're right or wrong. I didn't write the article - I only posted it.
I believe the author opines that the caliber of customer S is courting (the kind that walks away) won't help S due to churn rather than delinquency (since the service is prepaid).
Oh my god shut your pie-hole unless your eating or you know what your taliking about!. It is a good move and will remain one for awhile. Its you negative people that create huge gains though so keep on riding your crazy negative train.
As T and VZ are the Countrywides, as Homeowners walk away fom their over valued house and home phone bills and port their homephone to prepaid the fastest growing area of the market while landline slides away around the world
Prepaid and the best handsets Pre 4g BB et will drive S to over 20 soon.