Prepaid Calling Card Market

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The prepaid calling card market has been in a constant decline since 2004 as a result of growing competition from alternative technologies including wireless and VoIP. On the domestic side, the rise in the number of wireless subscribers with large buckets of minutes and the increase in the number of landlines designs that include countless long-distance calling have reduced the necessity for prepaid calling cards. Spending on domestic prepaid calling fell by over half from $1.3 billion in 2004 to $621 million in 2009. The decline will be less extreme through 2013,as wireless substitution will be less of an issue as the wireless market reaches saturation. The continuing increase in the penetration of countless long-distance designs will continue to have an effect. Domestic prepaid calling card spending's expected to decline to $551 million in 2013, a two.9 percent compound annual decrease from 2009.



International prepaid calling card spending peaked in 2006 at $2.2 billion. Since then, some migration to Skype and other VoIP services with lower costs has cut in tote calling card market. There was a modest decrease in the number of international minutes from 2007 to 2009. They expect the decrease to become more significant beginning in 2010. International card spending follows a pattern similar to domestic, with revenues declining modestly from their peak of $2.2 billion in 2006 through 2009, as well as a sharper decline through 2013. They expect international calling card spending to decrease from $2.1 billion in 2009 to $1.6 billion in 2013, a 6.3 percent compound annual decrease.

Overall, the number of prepaid calling minutes will decline from 40.5 billion in 2009 to 32.8 billion in 2013 as competing technologies continue to gain market share. Spending for the prepaid calling card market will continue to decrease, declining from $2.7 billion in 2009 to $2.1 billion in 2013 as the continuing decline in average prices combines with the decrease in the number of minutes

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