10/5/2010 10:58:00 AM
Operators ‘should drop prepaid scratchcards’
Operators could improve their EBITDA by a 3 to 5% margin if they stop offering customers prepaid scratch cards, a report from Strand Consult claims.According to the research, operators use up to 27% of the revenue generated from the sale of prepaid scratch cards to cover costs of physical distribution and commissions to retail channels.
Strand Consult said in a statement: ‘Our analyses show that the financial rewards for both operators and retailers are so substantial, that there are simply no reasons left to continue offering traditional scratch cards.
‘All areas that have mobile coverage can offer the possibility of distributing airtime, either via special point of sale terminals, or by using peer-to-peer solutions based on ordinary mobile phones, or via Smartphone top up applications.’
The result of dropping prepaid scratch cards would lead to less fraud and theft of prepaid scratch cards, the analyst added.
Strand Consult specialises in MVNO analysis. Many MVNOs operating in the UK offer prepaid scratch cards.