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Prepaid Reviews: “Verizon Trials $50 Prepaid Unlimited Plan”

July 23, 2010

Combine this with the impending launch of LightYear’s Verizon Prepaid (next month), and once again you can see the trend!  Note the “Unlimited Plan” below is only unlimited talk and text; data is extra.  LightYear’s $59.99 Unlimited EVERYthing is still the best max plan available.
JC

http://www.prepaidreviews.com/blog/verizon-wireless/verizon-testing-a-50-unlimited-talk-and-text-plan-36144/

Verizon testing a $50 unlimited talk and text plan

In the second quarter, Verizon Wireless reported subscriber gains, but those numbers didn’t tell the whole story. A number of their additions came from MVNOs that rent space on their network. These include, most prominently, carriers like Straight Talk and Page Plus. It now looks like Verizon wants to add its own prepaid subscribers. According to many users, they’re now testing an $49.99 unlimited plan in 11 markets. This is something similar to what Boost Mobile did a couple of years ago with UNLT’D. If rolled out nationwide, it could further change the prepaid wireless landscape.

The plan is not available online, even for customers within the test states. Instead, interested parties will have to call Verizon’s customer service line and speak to a representative. If you live in Georgia, Texas, Mississippi, Louisiana, Arkansas, Alabama, Florida, Tennessee, North Carolina, South Carolina, or Oklahoma you can give the plan a test drive.

There is no data involved, which comes as no surprise. While going all the way down to $50 per month, it’s unlikely that Verizon ever includes data at this price point. It’s more like the new T-Mobile prepaid unlimited plan, in that it provides only talk and text. Still, for service on Verizon’s nationwide network, with support right from Big Red itself, I can see plenty of customers on board with this.

Posted By : Joe
Posted at : July 21st, 2010 – 7:30 am
Filed under : Verizon Wireless

http://www.fiercewireless.com/story/report-verizon-testing-50-prepaid-unlimited-plan/2010-07-22

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Verizon Trials $50 Prepaid Unlimited Plan

July 22, 2010 — 9:47am ET | By Phil Goldstein

Verizon Wireless (NYSE:VZ) is testing a $50 prepaid monthly unlimited plan across the Southeast.

Verizon spokeswoman Brenda Raney confirmed separate reports about the company’s trial offering. According to Prepaid Reviews and BTIG analyst Walter Piecyk, Verizon started testing the prepaid plan earlier this week in at least 11 states in the Southeast. The plan, which is being dubbed the “Southeast save program,” according to Piecyk, is only open to subscribers who have been targeted with text message and email campaigns. The service includes unlimited voice and texting, but has no data option included.

Raney said that the trials are “a special, limited-time offer to select prepay customers.” She declined to provide other details about the trials.

“We suspect that in Q2 Verizon came under more pressure in its prepaid business from the increased competition over the past year,” Piecyk wrote. “MetroPCS might be having increased success against Verizon in these markets. We think prepaid subscriber losses are likely to increase on a sequential basis when Verizon reports Q2 results tomorrow.”

Interestingly, TracFone rides on Verizon’s network for its Straight Talk service. Straight Talk offers a $45 plan with unlimited voice, texting and data. The Straight Talk service continues to perform well, Piecyk said, adding that “we estimate that by the end of the year, Straight Talk will be generating more revenue and profit for Verizon than its own prepaid business.”

Verizon added 1.6 million net new customers in the first quarter, bringing its total subscriber base to 92.8 million. However, it added just 423,000 retail postpaid customers in the quarter.

The prepaid market has grown more crowded in recent months, with Sprint Nextel (NYSE: S) introducing several new brands into the mix. Its relaunched Virgin Mobile USA brand has a plan for $40 per month that offers unlimited messaging, email, data and Web access with 1,200 voice minutes. Sprint is also still touting its Boost Mobile $50 monthly unlimited service, which can now run on Sprint’s national CDMA network (previously Boost was limited to Sprint’s iDEN network).

For more:
– see this Prepaid Reviews article
– see this BTIG research note (sub. req.)

Related Articles:
Verizon adds 1.6M net customers in 1Q, but postpaid growth slows
Sprint launches multi-pronged prepaid wireless strategy
Sprint unveils Common Cents Mobile, pay-per-minute prepaid brand

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One Comment leave one →
  1. Juno permalink
    July 24, 2010 23:41

    Now why would Verizon do this with all the competition it will run into? I doubt it if people like me, who are loyal to their providers will switch at this point. I’ve had TracFone for some years and don’t think these prepaid newcomers will be able to pull the share they need. With TracFone I get 200 minutes a month for just $30. The phones are really great quality and the customer service is tops. Besides, TracFone operates on the Verizon network so I also get the great coverage. So, what else can Verizon offer me that TracFone’s not already giving me?

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