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October 28, 2009

Small Businesses Adopting Prepaid Wireless
By Gary Kim
Contributing Editor

Some 22 percent of U.S. businesses and organizations with five to 99 employees recently surveyed by Compass (News - Alert) Intelligence say they plan to buy prepaid wireless devices and plans before the end of 2009, in some cases replacing contract service with prepaid plans, Compass Intelligence says.

The survey of 10,011 U.S. mobile phone users, business owners and decision-makers covered mobile spending plans for the second half of 2009.
“Contracts, or postpaid plans, are still favored by both consumers and business owners according to our research," says Kneko Burney, Compass Intelligence chief strategist. But prepaid is more to small business owners and also with wealthy consumers, the survey found.
Among small business owners planning to purchase prepaid devices in the second half, nearly 40 percent plan to give one or more of these devices to their employees,” says Burney.
“The shift toward prepaid suggests a desire for more flexible contract options, likely due to a lower tolerance for long-term risk, among mobile phone buyers," she says. "In this recession, flexibility may be becoming more important than long-term cost savings or top-end devices for some customers.”
The most-likely business or organization buyers considering prepaid buys are those organizations already supporting multiple devices.
Small business owners are more likely to choose prepaid plans and the most likely to give them to their employees in the second half of 2009, as compared to other business decision-makers, Compass Intelligence finds.

Gary Kim (News - Alert) is a contributing editor for TMCnet. To read more of Gary’s articles, please visit his columnist page.

Edited by Stefania Viscusi


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