US prepaid wireless subscribers exceed 100 million, postpaid makes a comeback

August 14, 2012
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MobileMag

It’s another triumphant quarterly result for the prepaid sector in the US. The latest US mobile data market update from analyst Chetan Sharma reveals that more American customers are taking the prepaid route in Q2 2012 compared to the previous quarter. For the first time ever in history, prepaid subscriptions in the United States passed the 100 million mark.

In the postpaid sector, US wireless carriers were able to turn things around in Q2 by adding a total of 400,000 new postpaid subscriptions, a feat that was led by Verizon Wireless. Only Sprint and T-Mobile registered postpaid declines, which makes it the eight straight quarter of decline for the latter. The year-on-year growth for prepaid now stands at 12%.

Explaining the numbers, the mobile analyst believes that bad economy plays a major part in the move towards prepaid service for wireless users in the country. With the economy not likely to be picking up steam anytime soon, the trend is expected to continue for the rest of the year.

Overall, Verizon maintains it dominance and now holds 34% of carrier market share. Big Red’s lead is followed closely behind by AT&T with 32% and Sprint with 17%. T-Mobile is in fourth place with 10% of market share.

Are you one of the many new prepaid wireless subscribers in the US? What made you decide to make the switch? Sound off in the comments below.

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