Many analysts predict that prepaid services, a business that includes both wireline and wireless prepaid services, will become a multi-billion-dollar business. For the wireless service alone, Yankee Group predicts a $2.2 billion revenue by the year 2002. Already, the market is estimated to be worth more than $1 billion.

Year	Low	Actual	High
1992		12 million
1993		65 million
1994		325 million
1995	650 million		850 million
1996	1.1 billion		1.4 billion
1997	1.45 billion		1.8 billion
1998	1.75 billion		2.2 billion
1999	1.9 billion		2.6 billion
2000	2.0 billion		2.9 billion

Table 1. Telecard Figures from 1992 to 1997 and Telecard Forecast from 1997 to 2000

This market can be segmented in different ways:

• end-user preference—can range from high quality regardless of price to low price regardless of quality

• end-user psychographic make-up/lifestyle segmentation—For example, in the US, it is estimated that one out of every four people is not granted telephone service due to poor credit rating.

• demographic segmentation—For example, in cities with large ethnic populations, the demand for cheap, controlled phone services is high.

• technological segmentation—wireline versus wireless

• geographical segmentation—domestic versus international; internationally, according to one report, prepaid wireless represents over one-third of all prepaid service and can grow to exceed 50 percent of subscribers; assuming just 15 percent of subscribers globally, revenues should surpass $20 billion by the year 2000

Regardless of how the pie is sliced, the industry shows a growing demand, reflected by the multitude of providers.

A fact that brings up this question: How soon will the margins erode due to the level of competition? The answer must be provided both by the service providers' planning as well as by the platform providers, who need to show that the platform on which the prepaid service is being offered can deploy other revenue-generating services and that the platform is scalable, up or down, to fit the needs of particular locations.