Second annual Pulse of the Industry

Pulse of the industry

Pulse of the industry

The results are in from ICN?s first survey of industry players

by: ICN Staff

Do you wonder what others in the industry think about the current marketplace? Would you like to know how your competitors plan on growing their business this year? To get answers to these and other questions ICN took a first-of-its-kind survey of prepaid players on a variety of points. Most of the replies were from prepaid card issuers, although feedback came from agents, distributors, carriers, equipment manufacturers, wholesalers and retailers, to name a few. You might be relieved to know that an overwhelming majority of those answering the survey rated present business conditions in the industry as "good" (46%) or "okay" (47%). A whopping 83 percent of respondents have a positive outlook and expect their business to improve in 2004. Fifteen percent say their business will "remain the same as 2003." Only 2 percent expected business to decline. It is noteworthy that most of the respondents (93%) plan to expand their product offerings in 2004. The majority (88%) also state they will consider partnering or joint venturing with another company this year. According to the survey, compared to 2003, company spending in marketing in 2004 will increase (71%); remain the same (26%); and decrease (3%). In addition to identifying their challenges of the new year, a large number of respondents (58%) who currently do business internationally identified the areas where they are active; others (65%) who said they will explore or expand international business this year reported which areas they were most interested in. Overall, the results are upbeat and indicate a positive outlook across many vertical markets. Hopefully, the survey data that follows will help you fine- tune your strategy for 2004 as you make your way toward a successful year. Thanks to all who participated; please look for more of these surveys in the future. Survey participants Prepaid card issuers Resellers Master distributors Card printers Agents/distributors Retailers Wholesalers VoIP providers Long distance carriers/ RBOC/ LEC/ CLEC Cellular/wireless/PCS/prepaid providers POSA providers Consultants Switching equipment/ software vendors Billing/back office providers Vending providers Facilities-based carriers Payment transaction companies Advertising/promotional agencies Service bureaus Smart card equipment providers William Flanagan CHIEF STRATEGY OFFICER SENTITO NETWORKS "For our company, the most exciting development happening in 2004 is the wide deployment of Voice-over-IP (VoIP) and corresponding services by every type of carrier. From prepaid providers and wholesale long distance providers to Regional Bell Operating Companies (RBOCs), each carrier has a well conceived strategy for incorporating VoIP. This development has caused a spiked demand not only for sentitO’s products but also our guidance in providing a sensible migration path. "Our company's main concern this year is to remain focused on our products’ strengths and core business values." Brooks Smith PRESIDENT & CEO INCOMM "We are excited with the vast product opportunities to be unveiled in the prepaid category for 2004. InComm is at the forefront in creating exciting and new prepaid products to satisfy the consumer demand. We are most concerned with the challenge of consumer education. Our goal is to educate customers so they can evaluate which products truly meet their needs." Tom Konz SR. VICE PRESIDENT OF SALES AND MARKETING PRE SOLUTION "This year, we are very excited about the overall growth of our retail distribution partners, as well as the new prepaid products and services we are offering to our merchant partners. Early indications are that 2004 will result in record revenues and profits for all PRE Solutions retailers." "We are most concerned about the prepaid carriers' continued success for growing their overall customer base. In most instances, we rely on the carriers for marketing support of the category as well as adding new subscribers who in turn replenish their service at one of our retail partner locations." Ron Ferguson EXECUTIVE VICE PRESIDENT EURONET WORLDWIDE "We see major opportunities to move electronic services for prepaid wireless, long distance and other services. There are providers offering this today, but we’re not close to saturation levels. What’s exciting is that we're seeing a lot of potential partners coming to the table – either in the form of acquiring companies or partnering with other companies that are directly selling to many merchants and want to move to electronic distribution." Richard Harding CHIEF OPERATING OFFICER 9278 COMMUNICATIONS "This year, we're most excited about prepaid wireless; we think it will be huge for everyone. The concern is ensuring that you have all your reporting systems in place to manage the product. Also, a big concern for the industry at large is the FCC; some of its decisions seem to be erratic and not helpful to business." Derek M. Gietzen PRESIDENT AND CEO VYCERA COMMUNICATIONS INC. "I'm most excited about the prospect that we have seen the final chapter in the weeding-out process for the telecom industry. The companies that are left standing should begin to see improved valuations and new access to capital in 2004. "For 2004, I'm keeping a watchful eye on the uncertainty swirling around the state proceedings regarding UNE-P. Last year, Vycera, as well as other carriers utilizing UNE-P to provide services, gained significant ground on the ILECs."