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Profiting From Prepaid Phone Customers
Partly because of poor management, prepaid mobile services are less profitable than billed ones. Some mobile telcos have considered exiting this part of the business, but a structured improvement program can deliver a healthy revenue stream.
The take-away: Mobile carriers should choose their prepaid customers more carefully, offer incentives to prevent churn and drive upgrades, and address dealer fraud—which is common in this end of the business.
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