Brighter Outlook of Prepaid Calling Card Market

by Eliza Maledevic - Date: 2007-02-02 - Word Count: 552 Share This!

Prepaid calling cards exploded in telecommunication market because of the amount expediency that they give to consumers.

Prepaid calling is all that is needed in making calls, no need to bring lots of coins just to use pay phone. And no more prepaid bills since the prepaid calling card you're using were already paid.

One more reason why prepaid calling cards has fast growing popularity is the capacity that can give the users in order for them to regulate their calling time to save money on a monthly basis. Around Europe and Asia, prepaid calling cards are already been exploding for quite some time now. Since a user can only make specific calls corresponding to the monetary value of the prepaid calling card. Unlike in phone bill, user has no idea and just be surprise will the amounts that calls have reached. There is actually no deposits required, no credit history needed, to attain a prepaid calling card, all you have to do is pay for the card and the user can already make some calls.

The market sales of prepaid calling cards augmented from $750 million to above $3.3 billion in just 5 years. So the revenues in prepaid calling card market over the US and Canada between 1995 and 2000 has rushed forward, the PELORUS Group reported. The domestic and international components of the market at once rose at this period of time.

On the other hand, between the year 2001 and 2002, in North America the prepaid cad market decreased. The domestic prepaid calling card decreased through this phase of time. Nonetheless, the international prepaid calling cards still benefit continually with the growing revenues. The sum of the prepaid calling card revenues jumped back to over $3.2 billion by the rising popularity of the international calling cards.

The rates of international calling have been decreased in past years to bigger parts of the population. The decreased rates were made not only because of the huge competition with prepaid calling card vendors but also with the rising competition to other form of telecommunication and VoIP. But as a result to this, there been rising level f acceptance among consumers. Thus, call times has developed in excess to off set the unfavorable effect of revenue fall down because of lower rates. Even though some other sectors of the market like the domestic calling have sloped down, the net effect is larger increase in revenues.

In 2008, the volume of the international market will be over double the equivalent volume of the domestic market. A report says that in domestic prepaid calling card revenues foreseen to decrease from 2003 until 2008. In contrast with international prepaid calling card revenue which are certainly project to increase by roughly 33%, jumping to an estimation sum of $2.75 billion in 2008.

Yet, the industry of prepaid calling cards in not impermeable to problems. There is even a variety of opinions in regards to rechargeable cards. The issue here is that the retailers do not concur with the idea to sell the rechargeable cards since the sale is a one of a lifetime deal.

The speediest rising method of merchandising is the vending machines. Since this method provides improved security measures the retailers will surely benefit from it. And in addition to that, this method doesn't require employee participation and only requires lesser inventory.

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