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. Please click for more information, or scroll down to pass the ad, or Close Ad.
Home Enterprise I.T. Cloud Computing Applications Hardware More Topics...
Mobile Phones
Real-time info services with Neustar
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:



APC has an established a reputation for solid products that virtually pay for themselves upon installation. Who has time to spend worrying about system downtime? APC makes it easy for you to focus on business growth instead of business downtime with reliable data center systems and IT solutions. Learn more here.


 Mobile Phones
1.   Report: Amazon Phone To Feature 3D
2.   Review: Galaxy S5 Features Useful
3.   Galaxy S5 Won't Sway iPhone Lovers
4.   Charge a Phone in 30 Seconds? Done
5.   HTC Loses $62M, Pins Hopes on M8


advertisement
Report: Amazon Phone To Feature 3D
Expected to launch in second half.
Average Rating:
Review: Galaxy S5 Features Useful
Enough to give Samsung another hit.
Average Rating:
Galaxy S5 Won't Sway iPhone Lovers
But Samsung's new phone is a 'winner.'
Average Rating:
Product Information and Resources for Technology You Can Use To Boost Your Business

Network Security Spotlight
Tips To Defeat the Heartbleed Bug
Heartbleed headlines continue as IT admins scramble for answers no one has. Early reports of stolen personal data, including 900 social insurance numbers in Canada, are starting to trickle in.
 
NSC Backs Disclosing Software Vulnerabilities
Disclosing vulnerabilities in commercial and open source software is in the national interest and shouldn't be withheld unless there is a clear need, says the National Security Council.
 
Heartbleed Flaw Affects Hardware, Too
It appears the Heartbleed security bug affects not just Web sites, but also the networking equipment that connects businesses and homes to the Net, including Cisco and Juniper's equipment.
 

Enterprise Hardware Spotlight
Vaio Fit 11A Battery Danger Forces Recall by Sony
Using a Sony Vaio Fit 11A laptop? It's time to send it back to Sony. In fact, Sony is encouraging people to stop using the laptop after several reports of its Panasonic battery overheating.
 
Continued Drop in Global PC Shipments Slows
Worldwide shipments of PCs fell during the first three months of the year, but the global slump in PC demand may be easing, with a considerable slowdown from last year's drops.
 
Google Glass Finds a Home in Medical Education, Practice
Google Glass may find its first markets in verticals in which hands-free access to data is a boon. Medicine is among the most prominent of those, as seen in a number of Glass experiments under way.
 

Mobile Technology Spotlight
Is Amazon Launching a 3D Smartphone?
Once known for selling books on an e-commerce platform, Amazon is now a bona fide hardware maker -- and it's reportedly rolling out an innovative smartphone with a 3D screen.
 
Review: S5 Features Useful, Less About Gimmicks
There's a lot to like about Samsung's new Galaxy S5 smartphone -- among them, its relative lack of features. Samsung chose to focus on features people might actually want, not gimmicks.
 
Analyst: Samsung Galaxy S5 Won't Sway iPhone Lovers
The Samsung Galaxy S5 hits store shelves on Friday and the reviews are starting to pour in. The question is: Can the latest in the Galaxy line grab more market share from Appleā€™s iPhone?
 

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 | XML/RSS Feed

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.