CTIA Wireless 2009

Zer01 Lays Out Details of Its Unlimited Voice and Data Plan

| Apr 2, 2009 | Wireless Services - U.S. | Show Update

| Analyst: Bill Ho

Current Perspective: Moderate/Positive Vendor Importance: High Market Impact: Low

Click here

Event Summary

March 25, 2009 –- Zer01 announced that it will launch unlimited voice and data service on July 1, 2009. Priced at $69.95 per month with taxes and fees included, the prepaid service is GSM-based and requires a smartphone.

Analytical Summary

• Current Perspective: Slightly positive on Zer01’s announcement surrounding its unlimited voice and data plan that will make its national debut in July. While it seems surprising that a company with little wireless experience is creating a compelling prepaid wireless offering with a $69.95 price point that undercuts national carrier’s plans with supposed profitability built in, the business and technical details if executed correctly cannot be ignored. Its own managed IP core with quality of service built-in, management of data congestion and a CLEC ‘last mile’ operating model are also intriguing, giving some a modicum of credulity to its approach. Still it remains to be seen whether Zer01 can make good on its claims and build any base other than interested early-adopting techies.

• Vendor Importance: High to Zer01 as the CTIA tradeshow was its coming out party in the wireless industry where it continued to generate media buzz and industry attention. Providing service and technical details to the press and analytical community was essential to getting some level of credibility.

• Market Impact: Low on the wireless services segment currently because Zer01 is an unknown entity with little wireless industry background. The service will not be launched until July 1 and details are sketchy on distribution and true business operations. However, if Zer01 proves that it can indeed deliver, its business model could have high impact on a segment of postpaid high-user adopters drawn to Zer01’s unlimited voice and data value proposition.

CLIENTS ONLY

Current Perspective

Competitive Positives and Concerns

| Client access - Full report in Wireless Services - U.S. | More information

Top