The idea of prepaid was for the people who have poor credit is the common idea on the history of prepaid minute for phones. If you have a bad credit and you need the wireless services, you have to choose whether you want to pay a huge deposits to a cell phone carrier or use a product offered like the product offered by Tracfone’s company to the customers.
The common problem occurred here is that usually you get the substandard phones services after you pay through the nose for cell phone service. This makes the customer quite unsatisfied with the cell phone service and they often change their carriers to get the most suitable carrier for them.
Most of Prepaid companies at the time are still new, so they are quite satisfied with this small business segment.
However, they get the challenge from the customer that not satisfied to their service because they pay a lot and get a little from the company then most of them are stop their purchase to the products from the company.
The potential customers for that kind of companies are continuous to be shrinking. This shrinking customer phenomenon directly influences cell phone companies and make the phone becomes cheaper and easier and to get.
Those factors make people start to doubt even more to use the prepaid service. No people want to use the crappy phones with bad services and high minute costs.
This also makes the prepaid company like Tracfone become more competitive and gives more effort to attract the customers.
Tracfone dramatically lowering the rates of their prepaid service and this effort make Tracfone get more customers.
More customers continuously attracted by the lower rates offered by Tracfone and today more than 10 million customers are now using Tracfone Products.
This achievement makes Tracfone as the most successful Mobile Virtual Network Operator (MVNO) in United States. The customers even just have to pay approximately $6 per month to maintain their cell phone keep actives.