Economic crisis may bring pre-paid cellular phones here

It could be a good side of the down side.
Slowdown in economy may push telecommunications industry players in the Northern Marianas to institute a pre-paid service on their mobile telephone services in order to cope with growing concerns on billing collections.

Telecom companies have already started exploring the possibility of bringing in the digital cellular telephone technology into the islands, which offer enhanced communications features that are cost effective not only to providers but to the subscribers as well.

Part of this package of enhanced features is the introduction of Security Identity Module (SIM) cards that may be sold to subscribers almost the same way as phone cards are sold for public telephones.

SIM cards, which are inserted in a GSM or digital mobile telephone, contain electronic circuits and is capable of storing all information including names, numbers and text messages. It also contains the user’s telephone number.

SaipanCell Communications General Manager Hans Mickelson said pre-paid SIM cards are more likely to work in the Northern Marianas, the CNMI being home to several thousands of nonresidents whose stay on the islands is temporary.

“We are looking at introducing pre-paid SIM or smart cards for our mobile telephone services here when we finally go digital considering that the islands have a bigger slice of people who are on transient,” said Mr. Mickelson.

This would allow GSM mobile telephone subscribers or owners to purchase pre-paid SIM cards that can be charged with a certain amount of money or airtime. Since SIM cards have their own telephone numbers, users can receive calls too.

According to Mr. Mickelson, SIM card users can re-charge their cards with more airtime once they have consumed their credit. Because it is pre-paid, subscribers avoid the risk of accumulating enormous mobile telephone bills.

SIM cards are also equipped with an enhanced feature that allows it to bar or block the cards from making calls to other phone numbers otherwise kept in its memory, but still being able to completely receive calls.

Mr. Mickelson said the development of SIM cards is as fast as everything else in the mobile telephone industry. Through the years, SIM cards have become more and more sophisticated with improved functions and features being added at any given time.

In light of the slow rally of the CNMI economy that virtually reduced local consumers’ spending power, he said pre-paid cellular telephone services would help subscribers control the time and money they burn on the telephone.

At the same time, Mr. Mickelson pointed out pre-paid SIM cards in mobile telephone services would also address collection problems faced by industry players due to the apparent stubbornness of some subscribers to settle their account.

“Pre-paid service is one area we’re looking into because the CNMI has a lot of people who are here only on transient, so pre-paid and SIM cards will be good although we don’t have it here yet,” he said.

This, even as Mr. Mickelson stressed that majority of SaipanCell mobile telephone subscribers value their telecommunications services, thereby, religiously paying their bills on time.

“But like other businesses, you get to sign up people who have difficulty coughing out money for the services they have actually used and consumed. Collection is a big part of any business especially with the way the economy is now,” he added.

He explained pre-paid service on cellular phones is anticipated to become a big part of the mobile telephone industry in the Northern Marianas, as well as the rest of the worldwide industry.

“The island has a big turnover of people because CNMI is host to thousands of foreign contract workers, transients and tour agents whose stay here is limited so we have to be wary about subscribers who may not be able to pay,” Mr. Mickelson said.