In Canada, there is a potentially
untapped telecommunications market that no other company in Canada has tried to tap into. This is the truly “Pay-per-Use” prepaid plan market. This plan should be targeted for the occasional user or those who travel in and out of the country. No such “pay-per-use” prepaid plan currently exists in Canada.
How it works? Users pay $0 each month for their cellphone number, but have to pay a premium rate each time they use their cellphones for calling, texting, or using data. (Something like 50cents/minute, or 20cents/MB or 30cents/text or whatever Koodo rate thinks it’s financially feasible). The potential demographics for this market are:
1) Children who occasionally need a cellphone to call their parents, but are too young to need a monthly plan. Children call their parents to pick them up from school, the mall, from sports, or in case of an emergency.
2) Seniors who occasionally use cellphones to contact their family or caretakers.
3) Stay-at-home spouses who don't need a cellphone at home and are less "tech-savvy", but occasionally needs one when outside the home.
4) People who travel in and out of the country, but want to keep the same cellphone number each time they are back in Canada without incurring massive roaming charges from their foreign telecommunications company.
Existing boosters are not recommended for this plan to make it more financially feasible. But if boosters are needed, boosters can be of a specific duration, say one-day, one-week, or one-month. The Philippines telecommunication companies, like Globe, Sun, or Smart have a similar business model. Koodo can decide on the pricing which will make this financially feasible and whether to provide unlimited calling or texting of a specific duration for a premium price. Existing venders of Koodo prepaid credits can also provide the selling of these boosters. However, boosters are not essential to this truly “pay-per-use” prepaid plan.
To weed out infrequent users and to free up telephone numbers, Koodo should indicate that an inactive user for 6 months or a year (or whatever duration) will have their account deactivated. Koodo should also provide low-range market phones for these potential users, who want to use a cellphone, but don’t want to spend too much buying one. Many households also have old cellphones lying around, which can be given to these potential users to subscribe to Koodo’s new “pay-per-use” prepaid plan.
Existing Koodo customers, who need to contact any of the 4 demographic groups listed above, but cannot at the moment, will also benefit from this new plan by being able to contact those 4 demographic groups mentioned above.
Of course, any new business model will require extensive analysis of the feasibility of the model. However, I believe that this business model can tap into a potentially large market.