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Pocket Communications bringing competition to unlimited calling plans

When you think of flat-rate, unlimited calling plans, you probably first think of Metro PCS, Cricket wireless, and even Boost Unlimited. There are a few others out there, some of which will get a spot on Prepaid Reviews in the coming month. One of these is Pocket Communications. They’ve just received some good news in the form of $100 million in venture funding. This will allow the company, based in South Texas, to reach out to the Northeast, including areas of Connecticut and Massachusetts.

Those rate plans look similar to Metro and Leap, though there’s a hint the pricing could be improved. From the linked GigaOM article: “[Pocket CEO Paul] Posner says he can undercut them on pricing (Metro PCS plans start at $30 per month and Leap’s Cricket plans start at $35) and still make similar net margins.” This is because he doesn’t plan to add data service, much like Leap did this year. Data services can mean more network maintenance costs for the carrier.

Pocket is looking to open shop in Hartford and New Haven, Connecticut, Springfield and Pittsfield, Massachusetts, and Poughkeepsie, New York. Metro and Leap are not in this area. This could mean big things for Pocket, including lucrative roaming agreements.

As of now, Pocket has 300,000 subscribers. That could increase significantly if they catch on in the Northeast.

3 Responses

  1. PrepaidWirelessGuy Says

    This is interesting news. It seems dubious that they’ll be able to sustain a healthy margin at such low rates, particularly with unlimited plans where there are usually abusers that negatively impact profitability. That said, competition is good, so hopefully they’ll be successful!

    Cheers,
    PrepaidWirelessGuy
    http://www.prepaid-wireless-guide.com/compare-unlimited-plans.html


    Posted on December 1st, 2008 at 7:56 pm
  2. Fred Swicanzski Says

    It seems dubious you know what you are talking about. More competition brings down prices, and ups demand. Land lines make an awful lot of money with far more overhead.


    Posted on October 25th, 2009 at 2:26 pm
  3. Fred Swicanzski Says

    Oh and BTW if you read their website it clearly explains how they can beat competitors and still make money. It’s in the maintaince costs they do.


    Posted on November 1st, 2009 at 11:45 am

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