Jeff Auman
Substance over style, Boost Mobile keeps things simple by focusing on value over glitz.
iPhone. BlackBerry. Palm Pre. Droid. It seems these are the celebrities of the cell phone world everyone’s talking about. Well, not entirely. Last year, prepaid cell phones stole the spotlight in the U.S. as a smarter, more affordable alternative to pricey smartphones-and let’s not forget the smartphone’s pricey counterpart, the long-term service contract. With a different outlook on everyday costs given the economic downturn, many consumers were attracted to what prepaid cell phone carriers were offering and flocked to their money-saving handsets and plans. In fact, over 50 million people in the U.S. now use prepaid, up more than seven million compared to a year ago. That number is steadily rising because of one simple reason: the ability to cut your phone bill in half.
But can prepaid really hold its own in a social and media environment that favors a flashy touch screen over a basic flip? And with the economy seeing signs of life again, and consumers starting to loosen their grip on extra cash, will prepaid continue to draw in customers or is it just a trend?
At Boost Mobile, we believe prepaid is here to stay. What we’ve discovered is that there is a much larger “connection-centric” audience out there than one might think. In other words, there are still millions of people who are interested in simply talking and texting, not necessarily heavy data usage. Sure, smartphones have some very useful and fancy applications, however, not everyone needs or wants something that advanced. And let’s be honest, who enjoys being tied down with a contract for up to two years to one carrier? Even with subsidized smartphones, consider how much extra the consumer will have to pay per month over the next two years with postpaid vs. prepaid.
To confront the stigma of prepaid phones being bare bones or flimsy, Boost Mobile aggressively introduced many new handsets that, while not as feature-rich as smartphones with touch screens or ability to download hundreds of apps, were packed with all the necessities. For example, Boost Mobile handsets that were introduced in 2009 included digital cameras, music players, calendar management, threaded text messaging, video recording, POP email, GPS, QWERTY and Bluetooth.
Probably the most attractive feature of prepaid that we believe holds the key to staying power is the feature it doesn’t come with: a contract. The ability to pay how much you want and when you want offers consumers the freedom to control their costs. Unlike postpaid carriers who often charge questionable fees or just charge too much in general, paying with prepaid is completely predictable. In fact, we believe no contracts is the future of mobile wireless.
In addition, these days more consumers are leaning toward the simple things in life. Studies, like Consumer Reports’ “Top Gripes: What Bugs America Most?” found in the January 2010 issue show consumers are most fed up with deceptive fees and complex bills; it’s no wonder they’re demanding more simplicity and value from the purchases they make. With prepaid carriers like Boost Mobile bringing more of what consumers want-simplicity and value-to the market, owning a cell phone couldn’t be easier.
So how popular has prepaid, or no contract cell phones, become? According to many third-party experts, Boost Mobile was the most disruptive carrier of 2009 when it introduced the first unlimited nationwide talk, text, Web and walkie-talkie plan for a flat prepaid rate of $50 per month. This groundbreaking new service plan, combined with its breakthrough UnwrongedTM marketing campaign, pushed Boost Mobile to the top as the fastest growing no contract U.S. wireless carrier in 2009. Boost Mobile captured approximately 40% of total U.S. prepaid net customer additions in 2009 and is now the fourth largest prepaid carrier, passing Verizon prepaid and AT&T prepaid, respectively, from sixth place.
With affordability, predictability and simplicity, we at Boost Mobile are willing to bet that the true “smartphone” is the one that not only offers enhanced features, but also greater value and quality at an affordable cost.
Jeff Auman is Vice President, Sales & Distribution, Sprint Prepaid Group.