Verizon begins pushing prepaid as recession dawns

Verizon is reducing the cost of its unlimited prepaid option, a move that coincides with a wider emphasis by the company on prepaid amid the beginnings of a recession in the US.

Mike Dano, Editorial Director, 5G & Mobile Strategies

June 24, 2020

2 Min Read
Verizon begins pushing prepaid as recession dawns

Verizon is beginning to put more emphasis on its prepaid offerings, a move the company partially attributed to the US economy's nosedive.

"In a typical recession, we do see prepaid increase," explained Angie Klein, VP of consumer marketing for Verizon. "This is not specific to the recession but it's good to have it for a recession and to meet the needs of customers."

On Wednesday Verizon announced new prepaid pricing options for its "Verizon Prepaid" brand that include lower prices, more data and rewards for customers who stick around. The refresh to Verizon's prepaid rate card comes just a few weeks after the company reportedly embarked on a major new marketing push for its Visible prepaid brand.

Specifically, the new pricing options for Verizon Prepaid include 5GB of data for $40 per month, 15GB of data for $50, and unlimited data for $65. Previously Verizon Prepaid offered 3GB for $40 per month, 8GB for $50 and unlimited data for $70.

Further, the new Verizon Prepaid plans now feature discounts that lower monthly costs $5 after three months, and $10 after nine months. In offering such discounts, Verizon is essentially following the lead of Sprint's Boost Mobile, which implemented similar pricing rewards in 2010.

The new pricing options for Verizon Prepaid follow the operator's decision to run its first TV advertising campaign for its Visible prepaid brand. As reported by FierceWireless, the operator launched the campaign in May amid the loosening of widespread lockdown orders to stem the spread of the COVID-19 pandemic. Visible offers a $40 per month unlimited plan, and sales of the service are conducted entirely online.

Verizon historically has not put much emphasis on prepaid offerings, but that appears to be quickly changing as the US officially enters a recession.

That's noteworthy considering the US wireless industry in general has been recording record-setting losses of prepaid customers. But that trend could well reverse itself as operators like Verizon refresh their prepaid offerings and cash-strapped Americans hunt for cheaper wireless services.

Verizon's new prepaid efforts also come ahead of what likely will be a major change in the underpinnings of the prepaid market. Dish Network has agreed to close its purchase of roughly 10 million Boost-branded prepaid customers from T-Mobile on July 1. That transaction would signal Dish's entry into the mobile industry as one of the market's biggest prepaid vendors.

Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano

About the Author(s)

Mike Dano

Editorial Director, 5G & Mobile Strategies, Light Reading

Mike Dano is Light Reading's Editorial Director, 5G & Mobile Strategies. Mike can be reached at [email protected], @mikeddano or on LinkedIn.

Based in Denver, Mike has covered the wireless industry as a journalist for almost two decades, first at RCR Wireless News and then at FierceWireless and recalls once writing a story about the transition from black and white to color screens on cell phones.

Subscribe and receive the latest news from the industry.
Join 62,000+ members. Yes it's completely free.

You May Also Like