BOSTON-Wireless carriers are increasingly searching for solutions to serve credit-challenged customers, according to The Yankee Group, which released its opinions on AT&T Wireless Inc.’s recently announced GoPhone service and a similar service from Washington D.C.-based Liberty Wireless, majority owned by InPhonic Inc. Both solutions offer service to customers with access to credit cards, debt cards or other means of electronic funds transfer.
Strengths of the innovative approaches include that they are potentially more profitable than traditional prepaid services and they represent limited credit risks, according to the Yankee Group. Challenges, however, include GoPhone’s unpredictable and therefore potentially confusing billing cycles and Liberty Wireless’ need for large carrier acceptance for success.
