Boston – January 28, 2003

Capturing prepaid communications services revenues from consumers without banking relationships, or “unbanked” users, requires effective niche marketing strategies. A new report, Prepaid Calling Cards: Market Dynamics and Forecast 2003-2008, by leading telecommunications industry research firm ATLANTIC-ACM reveals that retail strategies aimed at these users require a higher level of complexity than traditional niche marketing.

“With more than five percent of Caucasians and one third of other ethnic citizens effectively bankless, the unbanked population represents a significant opportunity for prepaid service providers,” said Imke Louis Mensah, ATLANTIC-ACM vice president and analyst covering the prepaid industry. “However, in order to effectively tap this market, providers need to develop and execute strategies that go beyond the customization required for niche-specific marketing such as targeting specific ethnic groups to incorporate the buying habits of this unique segment of the population.”

Most unbanked consumers fall into two groups – ethnic groups representing cash-based cultures and teenagers without banking relationships. Within these groups are subsegments representing a wide array of niche-specific needs and habits – a reality that prepaid calling card providers are accustomed to addressing. However, unbanked consumers tend to spend all their money at once, which raises the bar for point-of-sale marketing requirements.

“First and foremost, providers need to offer their products at places where the unbanked population is cashing checks,” said Mensah. “Location is not enough, however, as unbanked consumers are brand and price sensitive and different segments receive promotional messages from different media sources. Hispanics, for example, prefer radio-delivered information to print-based media. These preferences vary greatly from segment to segment.”

Prepaid Calling Cards: Market Dynamics and Forecast 2003-2008 provides sizing information and future projections for the entire prepaid industry. The 250-plus page report is affordably priced at $1,950(US). For more information visit the ATLANTIC-ACM website at www.atlantic-acm.com, or call direct at +1 617 720 3700.

About ATLANTIC-ACM
Boston-based ATLANTIC-ACM is a leading provider of strategic research and consulting services serving the telecommunications and information industries. The company assists clients in evaluating telecommunications opportunities for successful investment, market entry and long-term planning. For more information, visit ATLANTIC-ACM’s website at www.atlantic-acm.com.