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RIM eyes prepaid market

By Damaria Senne, ITWeb senior journalist
Johannesburg, 20 Feb 2008

A plan by Research In Motion (RIM) to develop a prepaid platform for its BlackBerry phone will drive the adoption of Internet and data services in Africa and SA, says BMI-TechKnowledge senior analyst Tertia Smit.

This is in response to an announcement at the Mobile World Congress, in Barcelona, last week, that RIM has partnered with Paris-based backhaul infrastructure company Alcatel-Lucent to develop a BlackBerry prepaid platform.

The platform will enable BlackBerry users to track the minutes and data they have used against the prepaid amount remaining in their account, so they can easily refill their account as needed, the company said.

RIM and Alcatel-Lucent would not provide specific details as to when the solution will become available in Africa and SA.

However, RIM COO of administration and operations Dennis Kavelman said in an interview with ITWeb that the move would enable greater connectivity in emerging markets.

Some 80% to 90% of mobile phone users in emerging markets are on prepaid plans and the development of the platform with Alcatel-Lucent will make Internet services more accessible to them, said Kavelman.

RIM has over 12 million users worldwide, and sells more than a million devices per quarter. In the fourth quarter of 2007, RIM sold over 1.6 million devices, he said. The company has presence in over 110 countries globally, 10 of which are in Africa.

Consumer play

"It's clear that RIM applied their minds and identified the areas of the greatest need," says Smit.

World Wide Worx MD Arthur Goldstuck says the development of a prepaid BlackBerry platform means the smartphone will finally become a consumer play, with support for it built into the network, as opposed to server management being required.

While this means the phone could be sold to the prepaid market, it is likely that heavy marketing focus will initially be on contract customers in the consumer space, he says.

Kavelman said providing reasonably priced solutions to the consumer market does not mean a downgrade in quality.

"Consumers don't want products that are second-best to corporate solutions. They want the same level of quality at reasonable prices."

Network providers, which partner with RIM for the BlackBerry solution, will put their weight behind the offering, as it will drive their own data usages and revenues, says Smit.

"Data revenues in the consumer space are much bigger [than corporate or small business] due to the use of videos and games."

Related stories:
iPhone wins corporate fans
RIM targets smaller firms

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