Commentary

RIM Mulling Pre-Paid BlackBerry Service Options?

According to some internal Research In Motion documents, the company is considering how to pitch prepaid BlackBerry services to carriers. The company already has launched prepaid services in some Asian countries. Would it make sense in the U.S. of A.?

According to some internal Research In Motion documents, the company is considering how to pitch prepaid BlackBerry services to carriers. The company already has launched prepaid services in some Asian countries. Would it make sense in the U.S. of A.?The prepaid cellular market certainly has its place in the wireless ecosystem. For those who have low credit, no credit, or limited finances, the best option is to go prepaid. MVNOs and the major carriers offer a wide range of prepaid plans that include voice, messaging, and data services. What hasn't been available to the prepaid market yet is mobile e-mail a la BlackBerry.

If we're to believe documents discovered by The Boy Genius, RIM is working on a solution to the problem. BGR reports, "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 prepaid 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."


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Both ideas have potential. The detractor, of course, is the high upfront costs borne by the end user. Paying full retail price for a BlackBerry could mean anywhere from $300 to $600, depending on the device. Many regular prepaid phones can be purchased for $50 or less at retailers such as Wal-Mart, Target, Best Buy, etc.

The documents also explain how RIM is trying to pitch the ideas to carriers. One idea is to rid the prepaid concept of its low-income, budget-minded image. RIM also suggests that carriers pitch some of the other messaging services that BlackBerrys support, such as IM, SMS and others.

Whether or not the U.S. carriers will bite is anyone's guess, but it could really expand RIM's user base if RIM and its carrier partners can come up with the right combination of device pricing and service pricing options.


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