Affordable Connectivity Program fuels prepaid growth

The Affordable Connectivity Program (ACP) is a huge factor in the prepaid ecosystem. In the coming years, the two top sources of funding for this ecosystem will be the Total by Verizon store rollout and the ACP. A mobile virtual network operator (MVNO) told me their company had plans to push free services via the ACP, while providing refurbished devices to these customers either for free or at very affordable prices. Another example of the developing ACP ecosystem was the presence of CompuGroup Medical (CGM), which provides an ACP enrollment platform and a “suite of support services" intended to “expedite an ACP carrier’s time to market, optimize their subscriber retention, and drive end-to-end program compliance.” The ACP is heavily pitched via prepaid retail, too, as signs market “talk, text & fast 5G for as low as $0/mo," at Cricket Wireless stores and “free mobile service" at Boost Mobile dealers.

[Jeff Moore is Principal of Wave 7 Research, a wireless research firm that covers U.S. postpaid, prepaid and smartphone competition.]