Once relegated to outdated handsets and overpriced basic voice services, prepaid customers increasingly are being catered to with the latest handset technology and services to go along with more rational pricing plans.
7-Eleven Inc. and Virgin Mobile USA L.L.C. last week each launched their first camera phones for their respective mobile virtual network operator-based prepaid services, adding to a growing list of advanced handset and service offerings from nontraditional operators.
7-Eleven, which launched its Speak Out prepaid service earlier this year using Cingular Wireless L.L.C.’s TDMA network, added a trio of new Nokia Corp. handsets to its lineup that all include color screens and take advantage of Cingular’s GSM network. The handsets include the Nokia 3595, 3100 and the camera-embedded 3200. Handset prices range from $50 to $110, after a $50 mail-in rebate.
The new handsets join 7-Eleven’s existing offering of Nokia’s monochrome 2260 and color-screen 3560 models that have been used since the service was launched.
While 7-Eleven is only allowing customers with the 3200 camera phone to save pictures to the handset for review or caller identification, the company said it expects to add advanced data services in the near future designed to take advantage of Cingular’s GSM/GPRS network.
“By offering the popular Nokia 3200 wireless phone first through our proprietary 7-Eleven Speak Out program, we are on the cutting edge of attracting new wireless customers,” said Kevin Cooper, retail services category manager for 7-Eleven. “Potential customers will now have options for the wireless phone features they prefer; it’s not just a color or monochrome screen choice anymore.”
Pricing for the voice service will remain the same at 20 cents per minute, with instant messaging and text messaging charged at 10 cents per message. The service also includes voice mail, caller identification, call waiting and three-way calling.
7-Eleven also said it has expanded the scope of its prepaid offering from the initial 14 markets to 38 geographical areas encompassing more than 4,400 retail locations in 17 states and the District of Columbia.
Virgin Mobile launched its camera phone service using Audiovox Corp.’s Flasher V7 handset, which comes in two colors, includes a flash and retails for $170. Unlike 7-Eleven’s offering, Virgin Mobile allows users to send picture messages to other Virgin Mobile camera-phone users or e-mail addresses as well as upload pictures to an online storage site that can be accessed through the company’s Web site. Virgin Mobile charges 25 cents per address to send a picture and 25 cents to receive a picture.
The company noted that despite using Sprint PCS’ CDMA2000 1x network, the service doesn’t interoperate with Sprint PCS’ Picture Mail offering.
Virgin Mobile noted the new handset fits in well with its youth-oriented focus, which is interested in advanced handset features.
“The camera phone Virgin Mobile brought to market has to meet our demographics demand for style, substance and affordability,” said Dan Schulman, chief executive officer of Virgin Mobile.
In addition to the MMS capabilities, the Flasher V7 handset is the first Virgin Mobile phone designed to take advantage of the company’s VirginXL content, which uses Sprint PCS’ high-speed data network. Virgin Mobile noted the new content associated with VirginXL would include more in-depth downloadable applications.
“The benefits of greater bandwidth will be immediately tangible to anyone tapping in, and will certainly be a major boon to the photogs and gamers,” Schulman said. “We’re putting significant emphasis against rolling out advanced content over the next months and in 2005. The launch of the Flasher is just the beginning for us.”
Leap Wireless International Inc. recently launched its Cricket Clicks service in a handful of markets, allowing users to download content to BREW-enabled handsets. The service is available in Pittsburgh; Buffalo and Syracuse, N.Y.; and Dayton and Toledo, Ohio. A spokeswoman said the service would be rolled out to all of its 39 markets next year.
Leap also offers customers the Audiovox 8920 camera phone for $120, but like 7-Eleven, limits the image-capturing capabilities to review and caller identification. Leap said it will deploy Comverse Technology Inc.’s Multimedia Messaging Service Center to enable the carrier to deliver multimedia content
MetroPCS Inc. launched its more comprehensive @metro and Picture Talk service earlier this year, which includes BREW-based downloadable content and MMS using four different camera phones that range from $200 to $240. The Picture Talk service costs $5 per month for unlimited picture and text messaging.
Despite the interest in advanced services, not all prepaid companies are ready to take the wireless data plunge. Tracfone Inc., which is the country’s largest prepaid provider with more than 3 million customers, said it was looking at offering more advanced services eventually, but felt that handset prices remain too high for their target market.
Yankee Group’s program manager of wireless and mobile services, Roger Entner, noted that while the more advanced handsets likely require operators to provide additional subsidies that could impact their already razor-thin operating margins, the benefits of advanced services should balance out the additional costs.
“It allows them to participate in the wireless data boom,” Entner said, “as well as reduce the notion that prepaid is only for losers.”
