Newsletters
News & Information for Technology Purchasers NewsFactor Sites:       NewsFactor.com     Enterprise Security Today     CRM Daily     Business Report     Sci-Tech Today  
   
This ad will display for the next 20 seconds. Click for more information, or
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Build Apps 5x Faster
For Half the Cost
Enterprise Cloud Computing

On Force.com
Digital Life
Tame your scariest paperwork. Find Out How
Average Rating:
Rate this article:  
Target Takes Aim at Wal-Mart with Prepaid Mobile
Target Takes Aim at Wal-Mart with Prepaid Mobile

By Jennifer LeClaire
October 3, 2013 11:21AM

    Bookmark and Share
Wal-Mart entered the prepaid wireless retail market in 2009. And it's unclear why Target took so long to join the party. However, although the market is growing, there are no guarantees the retail giant will gain market share in this space. Whether this will be successful or not, we have to see, said wireless analyst Jeff Kagan.
 



Retailing giant Target is finally getting in on the prepaid mobile action. The company is calling its service Brightspot and it will run on T-Mobile's network and offer unlimited talk and text.

Debuting Oct. 6, Brightspot will go head to head with Wal-Mart's Straight Talk prepaid mobile service. Brightspot will offer up to 1GB of 4G data for $50 a month. The service also has a talk-and-text-only option without Internet access for $35 a month.

"Select your desired device from a robust selection of phones "from a simple flip phone to more advanced models," Target said in its marketing materials. "Want to keep your existing phone? No problem! Pick up a SIM kit, which will allow you to get Brightspot service on nearly all compatible, unlocked phones."

A Growing Market

We asked Jeff Kagan, a telecom industry analyst, for his thoughts on Target entering the prepaid mobile space. He told us the decision comes down to one simple word: opportunity.

"The telecommunications industry has been growing and changing dramatically over the last few decades," Kagan said. "Prepaid mobile has always been popular in the space."

Indeed, prepaid wireless revenues are set to cross the $25 billion mark by 2015, according to Atlantic-ACM, a strategic consulting and research services firm. Fedor Smith, an analyst at Atlantic-ACM, said pricing is at the heart of this growth, with the most aggressively priced plans for unlimited prepaid falling from $70 per month in 2008 to $25 per month today.

"The appeal of lower rates, particularly when paired with full-feature smartphones, drew many former postpaid customers over to prepaid services," he said. "The success of these offerings has not gone unnoticed by the major carriers."

Will Target Win?

AT&T has certainly noticed. After a failed attempt at acquiring T-Mobile -- and in the face of industry consolidation -- the carrier cut a deal to snap up prepaid wireless provider Leap Wireless in July. AT&T is willing to hand over $15 million per share in cash and will compete with the Cricket brand.

For its part, Wal-Mart entered the prepaid wireless retail market in 2009. Kagan isn't sure why Target took so long to join the party. Although the market is growing, there are no guarantees the retailer will gain market share in this space.

"Whether this will be successful or not, we have to see. However this is a natural step for Target in certain markets in certain stores," he said. "Target continually looks for ways to diversify. This makes sense from that perspective."
 

Tell Us What You Think
Comment:

Name:



Salesforce.com is the market and technology leader in Software-as-a-Service. Its award-winning CRM solution helps 82,400 customers worldwide manage and share business information over the Internet. Experience CRM success. Click here for a FREE 30-day trial.


 Digital Life
1.   Verizon Boosts FiOS Upload Speeds
2.   Visa Intros Online Payment Service
3.   'TV Anywhere' Solutions from Sling
4.   Mobile Apps Offer Last-Minute Deals
5.   Drive-ins: Digital Switch Is Crucial


advertisement
Apple Digital Book Settlement Set
But company still appealing decision.
Average Rating:
Radical.FM's Freemium Biz Model
Online radio startup asks for donations.
Average Rating:
Facebook Social Experiment Irks Us
Secretive test was legal, but ethical?
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Juniper DDoS Solution Aims at High-IQ Networks
In the face of more complex attacks, Juniper Networks is boosting its DDoS Secure solution to help companies mitigate the threats with more effective security intelligence throughout the network fabric.
 
Large-Volume DDoS Attacks Hit Record in 2014
The number of distributed denial-of-service (DDoS) attacks set a record in the first half of 2014, according to a report by Arbor Networks. The number of attacks over 20 GB/sec doubled.
 
U.N.: Nations Hide Rise in Private Digital Snooping
Governments on every continent are hiding an increasing reliance on private companies to snoop on citizens' digital lives, the U.N. human rights office says, with grave concerns about privacy.
 

Navigation
NewsFactor Network
Home/Top News | Enterprise I.T. | Cloud Computing | Applications | Hardware | Mobile Tech | Big Data | Communications
World Wide Web | Network Security | Data Storage | Small Business | Microsoft/Windows | Apple/Mac | Linux/Open Source | Personal Tech
Press Releases
NewsFactor Network Enterprise I.T. Sites
NewsFactor Technology News | Enterprise Security Today | CRM Daily

NewsFactor Business and Innovation Sites
Sci-Tech Today | NewsFactor Business Report

NewsFactor Services
FreeNewsFeed | Free Newsletters

About NewsFactor Network | How To Contact Us | Article Reprints | Careers @ NewsFactor | Services for PR Pros | Top Tech Wire | How To Advertise

Privacy Policy | Terms of Service
© Copyright 2000-2014 NewsFactor Network. All rights reserved. Article rating technology by Blogowogo. Member of Accuserve Ad Network.