Blog: John Myers: Response to declining ecomony: Pre-Paid

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Response to declining ecomony: Pre-Paid

While this particular information has been out for a while, I found the comments of Verizon CFO Doreen Toben to be interesting.

"We see prepaid as an opportunity, we felt in the past we left some money on the table."

The North American market has been traditionally a post-paid market. It is "ingrained" into our habits much like "all you can eat" billing for usage. The question is will the declining economic conditions be the motivation for both consumers and telecoms to make a significant change? In order for that to happen, you would need a significant downturn in the economy.... Most economists don't see the economic conditions taking that path. Then again "on the other hand..."

NOTE - I tried to find that classic economist joke about "On the one hand... but then again on the other hand". I will greatly appreciate it if anyone can find a link for that joke and/or the text of that joke. Drop me an email at John.Myers@BlueBuffaloGroup.com or post your comments to the blog.

Technorati Tags: Telecommunications, Telecom, Doreen Toben, Verizon, Pre-Paid, Post-Paid