Prepaid calling cards surged in 2H02

The use of fixed line prepaid calling cards in Argentina surged during the second half of 2002, primarily as consumers cut back costs in response to the severe economic crisis, according to a report published by local consulting firm Telenexo, reported by local papers. Telecom operators sold 1 million prepaid cards in April 2002 in Buenos Aires, and this figure jumped to 2.5 million in July this year, according to Telenexo. The economic crisis meant a growing number of fixed line customers have opted to limit monthly consumption from their phone lines, according to the reports. About 20% of all fixed lines now have credit limits, and customers top up this limit with prepaid cards, the report said. This accounts for the fact that about 80% of the calling cards are sold by incumbent telcos Telecom and Telefonica, Telenexo said. However, another factor behind the growth is the dramatic increase in the number of cards on offer, peaking at 60 in late 2002, Telenexo general manager Ivan Saubidet said, adding that this figure has now stabilized at around 40. Calling cards cost between 3 (US$1) and 50 pesos, and can be used to call from any fixed line phone. The most popular cards are for between 5 and 10 pesos. Telenexo executives were not available for comment when contacted Thursday.