RIM’s internal plans for pre-paid BlackBerry service, BlackBerry in a Box
RIM’s already gone and launched its pre-paid BlackBerry server in Indonesia, but there’s a whole lot of countries that are probably foaming at the mouth. We’ve been saying this all along — pre-paid will take RIM to the next level. Why do you think Sidekicks got so popular? Because every single person in the hood could get one, every one who didn’t have perfect credit could get one, and even people that just wanted that flexibility could get one. We have a feeling this is going to be RIM’s power play for 2009. There are two different ways of doing BlackBerry pre-paid, one is daily, and one is monthly. We got a hold of pretty detailed document outlined all of RIM’s internal strategies for this. Stuff like their pitch to carriers, the target market, how RIM gets paid, when they get paid — all of that good stuff. Here’s a little synopsis of the key points:
- Targeting people that are on a limited budget
- People who can not get post-paid carrier credit
- Those that do not want to be tied to a long-term contract
- People that don’t “want to share personal information because of security and tax purposes.” DRUG DEALERS!
Here’s some of the selling points to carriers:
- It takes the risk off of the carrier. Meaning, instead of the carrier shelling out for hundreds of thousands of devices and them sitting in their stock rooms, it would be up to the retailer to sell the devices. By retailer, we’re talking about Best Buy, RadioShack, Fye, etc. Please note by the way those retailers are just for an example, there’s nothing in here that says anything about them specifically…
- It increases how much pre-paid users spend
- The pre-paid BlackBerry service engages users and reduces the churn rate. Stats show that after 25 days of inactivity, 70% of pre-paid users go bye-bye. With BIS however, the carrier has a direct channel to market to the subscriber and send them offers, campaigns, and other things to try and get them to stick around.
There’s two concepts RIM is fooling with in regards to how this works. One is purchasing the device with no subsidy (full price) and buying pre-paid cards to fill up their account with. The second is slightly more intriguing, and that’s a BlackBerry in a Box. The user purchases the device and one year of BIS service all in one package at the retailer. After a year is up, they can purchase whatever they’d like. Another year, time-based access, monthly, all that.
Finally, here’s some last “marketing practices” RIM is touting:
- Don’t call it pre-pay. It has a connotation of being cheap and poor.
- Upsell the IM services like Google Talk, MSN, etc.
- Encourage carriers to put the devices at the front of the store since it’s pretty much a no-headache sale.
So what do you think? If RIM can actually start to get carriers to jump on-board with this, we have a feeling this is going to make them absolutely explode with growth at a time where most other manufacturers are looking at cutting jobs and scaling back production. Who’s buying a “BlackBerry in a Box”?
HAHAHAH
DRUG DEALERS!!! HAHAHAHA
Drug Dealers dont carry Blackberry, they carry Sidekicks! At least thats what Ive seen in my city, from open and honest drug dealers (are they REALLY honest?)
Its funny though
Oh this makes perfect sense. After all, people that are poor and/or have awful credit have a real need for “first class business email.” Right.
@Roger A: I guess that’s why the story mentions “Why do you think Sidekicks got so popular? Because every single person in the hood could get one …”
I always found it somewhat unusual running into another SK user. I suppose after I go vote “none of the above”, I’ll find it less unusual to run into other BB users…
Maybe now they can upgrade :-p
It has nothing to do with people who have bad credit having access to first class business email. It has everything to do with RIM putting their product into the hands of as many people as possible. That would only translate to more earnings for them, which in turn would translate to higher earnings for their shareholders.
I vote Perspective as the most useless BGR poster ever. Whos with me?
@sooooo
If every finger on my hands and toes would count, I would put them forward to agree with you. Either way, I still agree with you. Dude has no idea about anything.
Graet idea! Two thumbs up!
Doesn’t Virgin Mobile Canada do this already?
http://crackberry.com/virgin-mobile-canada-getting-curve-8330
Does it really state “Immigrants and temporary workers”?
Well that is good news I hope RIM introduce this prepaid service in South Africa as the majority of the subcribers here are on prepaid…. Can’t wait for it
I love the idea of a prepaid email/data service through RIM that can be used in conjuction with any postpaid or prepaid voice service.
@ sooooo: I agree. I don’t know how Perspctive goes about living his life with such a narrow view on things. I’ve followed his posts for some time now and it’s sad really.
If this website were to have a comment ranking system out there, I can almost assure you that perspective’s approval rating would be extremely low, maybe even subterranean.
All in favor of banning perspective say yay.
Yay!!!!
First-
I apologize to all the legitimate posters on BGR for this comment, as it is admittedly off-topic. I think that the BB in a box is an intriguing idea.
Second-
yay!
Third-
Anyone else notice that Perspective has a habit of focusing (obsessing) on credit ratings? Reminds me of all those kids back in middle-school who owned a “bad-ass ________” (fill in the blank) but you couldn’t see it because it was kept at an uncle’s house…. I would imagine that this sort of behavior probably underlies some serious flaws in the poster’s own credit score and inability to secure a proper mobile contract, resulting in the aforementioned obssession and his engaging in a sort of “alternate reality” wherein he has the perfect score and can get that shiny new phone – although he’d probably keep it at his uncle’s house….
(Yes, Perspective, I am talking about you)
@mpg4life
I just fell out of my chair laughing and I am typing this from the floor.
It sounds like RIM is targeting emerging markets, not developed countries like the U.S. Although, the idea of a prepaid BlackBerry here in the States sounds intriguing.
The real intriguing part about pre-paid BB service, IMHO, is for international travelers. Overseas data charges can look like the U.S. national debt in no time. This option may solve this for lots of folks who travel from North America to Europe (or elsewhere) and don’t have the advantage of a corporate expense account. This way, while I will pay my own data charges, at least I’ll know what I’ll be paying. Sweet!
I don’t deal drugs so I’m not positive what the profile of gadgets is for them, but I know the weapon of choice amongst high school kids at least the one’s I come in contact with on a daily basis is the SideKick. If your a text nazi like most kids seem to be it tops their list for whatever reason, next seems to be the BB Pearl for those that have mastered SureType and one of those damn Verizon phones.
When I travel overseas, which is quite a bit, most people in the countries I visit are on pre-paid. In a smart move RIM is trying to internationally corner an already large market globally that is utilized, but not as excepted in the North America or should I say we arrogant Americans.
I live in Kenya, a country where 85% of cellphone users are on prepay. Apparently RIM has managed in conjunction with Safaricom (a local service provider) to come up with Blackberry prepay service which is quite popular.
Users buy a handset unsubsidized (currently it is the aging 7130 but hey it still works fine) and then every month they top up the equivalent of US$25 and dial a particular short code number to enjoy activate and enjoy the service!
Seeing as the next opportunity frontier are the emerging markets where contracts are the exception rather than the norm maybe it is only wise that RIM is thinking of going along this path.
Seems RIM’s marketing dept is catching up to their R&D. This is a great idea and I see no downside (well except for other phone makers who are going to have to lower forecasts after this plan is set into motion).
All that’s left is to place a few of the latest handsets in random screen appearances (movie here, Entourage episode there) and they’ll be rolling.
Question, that blackberry in a box, would that be subsidized as an incentive to have person pay for that and a year’s service up front? Otherwise that would be kinda steep even for a 40 hr a week (steady earner) to pay.
No hassle sale by the register? How does that make any sense? Picture this:
You’re in a big box electronics store, have picked up a couple CD’s, a DVD and maybe a new memory card for your digital camera (tally: $40-60) and are headed to the register. As you wait in line, you glance at the piles of blank CD-R’s and DVD+R (50/spindle) sitting there begging to be bought for a few dollars and see the new Blackberry Thumbbuster-in-a-box on sale for $1,099. How many people would think to themselves, “yeah, maybe I’ll pick up one of those on the way out.”?
What is the average ticket at a big box electronics store? Probably a hell of a lot less than the BB-in-a-box. See RIM, this strategy only works if the item you want to display / sell up front costs significantly LESS than the items the average consumer is purchasing. See grocery stores (candy at check out), gas stations (candy, chips), convenience stores (more candy), car washes (extra $3 for super-duper wax? why not!) or any other mass-market retail environment.
Good luck with that strategy, and BTW – you might want to find some new marketing / pricing executives.
I know for sure that they already do prepaid BIS service in Indonesia through 3 of their biggest GSM providers.
They offer monthly, bi-weekly and even one day connection (only 1 provider)
So, i don’t see any problem on that
That’s my 2 cents
The difference in pricing for prepaid via card for monthly, bi-weekly, daily and prepaid for the device and annual contract is likely to be significant. Even on a $30/mo voice + $30/BB data + taxes/fees =$75mo. So the annual charge for service is $900 and then add on the unsubsidized cost of the device at another $200-500 and you end up with a $1,100-1,400 bundle for a full year. My beef is more with the “annual fees bundled with device sale” model than prepaid with buy-by-increment.
her ein the caribbean cable&wireless has intitiated a prepau service for blackberry users.it has taken off quite well .at roughly $40.00 per month
I think non-GPS equipped BB on prepay will be a very popular option with Dealers & other criminal elements, if for no other reason than BB msgr / PIN messaging. Totally encrypted communication on the “cheap”.
The writer’s assumption that everyone in the “hood” has a sidekick is pretty offensive.
Grow up and stop stereotyping people jackass.