Boost, MetroPCS see prepaid sticking around

impressive number of prepaid adds in the first quarter of 2009. We also asked the question of whether this is a long-term thing, or just a temporary refuge while the American economy remains unstable. If we’re to believe Roger Linquist, CEO of MetroPCS and Neil Lindsay, CMO of Boost Mobile, this is no blip on the radar. Instead, it’s Americans waking up and realizing that they don’t have to pay so much for cellular service. Both companies offer unlimited calling plans for $50 per month, which have become a haven for cost-cutting consumers. First up is Lindquist:

“We don’t think this is necessarily something that will go away in six months or 12 months if and when this economy does turn around, which probably looks more like 2010 or beyond,” he said.

And then Lindsay:

The fifty-dollar plan has lots of legs. We don’t expect it to be a short-term spike. Competitors are clearly reacting and we have to get out every day and make sure we continue to push ours to make sure the [product] experience is still great.

Of course, both Lindsay and Linquist have a vested interest in this demand remaining even as the economy recovers. My reason for thinking this is for real comes in the form of a question. Why, after reducing costs on cell phone service, would consumers willingly start to pay more? In other words, if Metro and Boost can keep a high level of service on these plans, there’s no reason they’ll go away.]]>