Expect to Find Cell Phones in the Unexpected

Expect to Find Cell Phones in the Unexpected

August 4, 2005

Pre-paid wireless phones are popping up all over including your local 7-11 convenience shop. Customers can grab a Slurpee and a cell phone and be merrily on their way. 7-11 is just one of many new companies, with no technology background, bringing in pre-paid cell phones. Jeanne Yanaro, a marketing manager who lives in Chelmsford, Mass states, "It would have been the last place I'd have thought to go for a phone."

These companies or mobile virtual network providers have found a way around buying radio spectrum. Instead they lease network space from carriers such as Sprint and Cingular at wholesale rates and purchase phones from Nokia or Motorola, box it up and re-sale it cheap often times with no monthly charge or commitment.

"You no longer have to be a technology company to be in the technology business. You pull it out of the box, turn it on and start talking." stated Kevin Elliott, vice president of merchandising for 7-Eleven. 7-11 began offering the cell service in June 2004 and currently features six cell phone models at 5,500 stores.

The pre-paid service is hot market to enter into as most pre-paid providers can offer minutes for .20 with no contract and no expiration on the minutes. Wireless carriers offer packages that consist of certain amount of minutes and services for a monthly fee. Pre-paid is appealing to young users and infrequent cell phone users.


Many are hoping to get a piece of the growing market. Thirteen million Americans out of 182 million users nationwide take advantage of the pre-paid services and it is expected to grow 42% by 2006 according to Adventis, a telecommunications consultant. New companies expected to enter into the pre-paid market is ESPN and Disney.

Click here to find out more about cell phone service.