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Verizon Laughs Off Prepaid Pricing Possibilities
So much more money to be paid off of post-paid...
by Karl Bode 08:47AM Thursday May 21 2009
Though a lot of their wireless customers last quarter came thanks to the company's prepaid plans, Verizon says they're not planning on any real response to the recent boom in unlimited, prepaid plans by MVNO competitors (it's nice they have that choice). While AT&T recently ramped up their prepaid push with a somewhat gimmicky $3 per day prepaid plan, Verizon CFO John Killian proclaimed this week that the carrier does not "feel compelled or feel it’s the right strategy for us to go out with any kind of unlimited prepaid offering." Prepaid growth is explosive for now, with 80% of US subscriber growth in the last quarter. Though the real money is in postpaid customers on long term contracts -- 1 million of which Verizon added in Q1.

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Irun Man
Spartan up
Premium
join:2002-10-18
Walden, NY

They have little to worry about

With Boost Mobile offering $50 a month unlimited on the legacy Nextel network with its erratic text messaging and limited coverage, it's little incentive for VZW to offer similar pricing on their towers. Postpaid is where the real money is, and if they can get iPhone they can be unstoppable.

Anyway, Verizon Wireless got burned pretty bad by their former MVNO partner Amp'd Mobile. I doubt they'll be doing anything close to that anytime soon, unless their postpaid RGUs take a steep drop and customers flee for other carriers (they're not).
--
Don't pay ME back, pay it forward.
glinc

join:2009-04-07
New York, NY

Re: They have little to worry about

yea, Big Red don't need to compete with anyone....as most customers that use verizon are business and there's a large amount of regular customers also. Their coverage speak for themselves
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Also not every market has issues with the iDEN network, they're also working on the texting part as a huge problem with at once. You'll have problems if you add half a million customers in a quarter without buying anyone. millions of people left VZW, Sprint (postpaid), TM and ATT for the Boost services.

Also it's not very limited. I get service where VZW, Alltel, Sprint, ATT and TM doesn't even have service. My calls are also clear.
jsb825
Premium
join:2003-10-08
Exeter, NH
but wait a min.. Virgin mobile has a 49.99 plan and they are piggy on top of any cdma network... mostly verzion.. so yes.. verizon should compete!!!

Enough with the per min crap.. Those days are over...
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: They have little to worry about

Virgin Mobile is actually a partnership with Sprint.

rtfm

join:2005-07-09
Washington, DC
Reviews:
·Mediacom
I'd jump for a similar $3 a day T-Mobile plan. I seldom use my phone but while in transit.......

They have a $1 a day plan now that gets you $0.10/min, free TMTM, and free after 7pm. It's nice because it is ONLY on days you make/get calls. And you can change plans instantly.

CurGeorge8

join:2005-05-02
South Park, PA

VZW Unlimited Pre Paid

VZW Already has a $3.99 unlimited prepaid plan.

»www.verizonwireless.com/b2c/stor···Overview

Although, it's the most expensive unlimited plan out there, and doesn't include unlimited txt'ing (add $20).

But yea, they have it.
iansltx

join:2007-02-19
Austin, TX
kudos:2
Reviews:
·Time Warner Cable
·Verizon Online DSL

Re: VZW Unlimited Pre Paid

Was about to say the same thing. Yes, it's 20% more expensive than their postpaid unlimited plan (which by the way is available without a contract if you're willing to pay full price for your phone) but they do have such a plan available. Trust me, I'm compiling a list of carriers for a work project I'm doing, complete with rates and all that.

sivran
Seamonkey's back
Premium
join:2003-09-15
Irving, TX
kudos:1
Verizon prepaid in general is the most expensive out there. T-Mo and AT&T are cheaper by far, and Sprint? What prepaid?

UnKown
The Underground Network

join:2002-09-08
Orlando, FL

Re: VZW Unlimited Pre Paid

virgin mobile runs off the sprint cdma network, and they have the 50 unlimited voice and 10 unlimited text. Sprints network is something to be afraid. While not as robust as verizons its definately cheaper. im currently a metropcs customer and i enjoy my 40 unlimited talk/txt plan
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: VZW Unlimited Pre Paid

Sprint's network not as robust? They both use CDMA. Sprint is also building their 4G network, which has gone live. VZW hasn't even started building yet.

Sprint has service in major cities as well, and if they don't you roam for free without a problem.

Sprint by far is better overall that VZW. VZW is just an over priced cell carrier like ATT. In the end pricing wins.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Sprint prepaid is a partnership with Virgin Mobile UK and Sprint- its called Virgin Mobile USA.

It's available at almost every retail store that sells prepaid phones, and is also available at every Sprint store--reseller/dealer and Corp. owned store.
tmc8080

join:2004-04-24
Brooklyn, NY
Reviews:
·ooma
·Optimum Online
·Verizon FiOS

nearly the biggest and 'best'

even though vz is the 2nd biggest they have the best coverage out there.. and they let it to go to your head.. it's surprising that they are still digesting the massive loss of sprint and at&t customers due to their flipflops and mistakes in recent years. nearly ALL the other carriers have a cheaper plan or have competitive offerings in pre & post paid service.. now it's up to the customer to make the decision with which company they spend their money.

a larger portion of consumers are dealing with lower incomes and that lends well to a prepaid service upon which they don't actually have to have a contract and can buy service when they can afford it... otherwise they can use 911 in an emergency (which everyone eventually pays into whether it's prepaid or post paid).

Verizon's going to have to begin competing on price for it's wired & wireless services. just having a better service at a higher price won't last forever. not with seasonal gas prices hitting the price gouging mark again (2.50/gallon & rising)
EPS4

join:2008-02-13
Hingham, MA

Re: nearly the biggest and 'best'

Verizon is the biggest again- didn't you miss the Alltel merger?

VZW may have to compete on price in the future, but it's a smart move not to do so until they absolutely have to, which clearly isn't the case right now. (just look at their financial numbers)
disc

join:2005-12-31
Raleigh, NC

pre-paid alternatives

»www.cellguru.net/prepaid_compare.htm - see row titled "Local Service Area" for which provider (VZ, Sprint, AT&T) is the underlying network for each of the MVNOs.