Pre-Paid Web Surfing Could Double In '04: Report

If you thought pre-paid telephone calling cards were a big hit, just wait until you see pre-paid Internet cards take off in earnest, as a published report says it's likely to start doing in 2004.

USA Today reported December 5 that pre-paid Net surfing was "just" a $30 million business in 2002 but is likely to double by or during 2004 and continue climbing, especially since some of the Net's biggest players – America Online, AT&T, and Sprint – are joining smaller companies like Budget Dialup to get in on it.

In large part, pre-paid Internet cards are probably making up for lost time, since they actually began in the mid-to-late 1990s but were thwarted by free Internet services which have since disappeared, the paper said. The drawbacks, however, include slow dialup connections and lost e-mail and other data if the user runs out of minutes before finishing work, though the paper added that most pre-paid services have "grace periods" before deleting accounts so such data won't be lost to the user.

"It's a great idea," said Adult Entertainment Broadcasting Network's Scott Coffman. "We think it will have it's place in the market; however, it will be a niche place."

Wal-Mart has already begun selling AOL pre-paid cards, including a $14.99 starter kit that includes a software CD and a login and password which specify to the user's account, USA Today said. Once you install it, the program will track your minutes and tell you when you run out of time, but you can buy more time at the AOL Website or through buying refill cards, the paper added.

The typical target audience for pre-paid Internet cards, the paper continued, include business travelers, people with no credit or bad credit (since pre-paid cards can be bought with cash), infrequent Net surfers whose usual online time is only a few minutes per month, or travelers who use pre-paid as a fallback if they can't access wireless Internet connections when they travel.

AOL pre-paid Net cards are also being sold by way of Office Depot and Western Union, USA Today said, with Sprint pre-paid cards selling at CVS, and AT&T at Walgreens and other retailers.