The market for securitisation of mobile handset plans, also known as device payment plan agreements, is in its nascent stages in the US, observes Standard & Poor's in a recently published research paper. The only DPPA issuer so far is Verizon. S&P said that, following changes in the structure of wireless phone payment plans, the provision of customer credits appeared to better match securitisation cash flows. "DPPA receivables-backed securitisations benefit from lower funding costs ... than the corporate bond rating on the parent telecommunications company," S&P said. The agency forecast securitisation volume in the US at US$5 billion to $10 billion, or ten to 20 per cent of estimated annual device sales, and roughly one transaction per quarter from Verizon.