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Data for today’s episode is provided by Mercator Advisory Group’s Viewpoint: Prepaid Mobile Phone Market 2021: Key Trends and Use Cases
Overview of the U.S. Prepaid Mobile Market:
- In 2021, 97% of U.S. adults own at least one mobile phone.
- 85% of U.S. adults own at least one smartphone.
- The U.S. prepaid mobile phone market has experienced modest but consistent growth in recent years.
- The amount loaded onto prepaid cards for mobile minutes steadily increased from $43.9 billion in 2014 to $59.1 billion in 2018.
- The market contracted slightly in 2019 and 2020, with amounts falling to $57.2 billion in 2019 and then $54.1 billion in 2020.
- Despite this decline, Mercator Advisory Group projects a positive CAGR of 2.6% for the prepaid mobile minutes segment of the U.S. closed-loop prepaid market through 2025.
The prepaid mobile phone market is marked by intense competition and gradual, sustained growth. Prepaid mobile plans have evolved to incorporate a broad array of compelling features, while remaining more flexible and affordable than postpaid alternatives.
This viewpoint describes the history of the U.S. prepaid mobile phone market, examines key trends within the market, and highlights opportunities within the space.