The nation’s top wireless carrier by subscribers has quietly slashed the cost of prepaid daily unlimited calls from $3.99 to $1.99. At the same time, Verizon Wireless doubled the cost of the plan’s text messages from one cent to two cents.
The new pricing is reportedly available only on a select group of feature phones, according to research group Current Analysis, which discovered the change. Fierce Wireless, a telecom blog, was the first to report it.
Prepaid rates appeal to many customers because they don’t require a contract and can be cheaper than a monthly postpaid account since customers aren’t charged for days when their phones are idle.
Verizon also offers a 99-cent daily plan for limited talk and a 25-cents-per-minute plan.
Cost-Effective
“Given that our economy continues to be slow, many people are switching to prepaid because they realize that they can save money,” said Maidy Whitesell, a wireless expert at Current Analysis. “Many companies such as Boost Mobile, Virgin Mobile, TracFone, Leap and MetroPCS have started tweaking their prepaid offerings, but they are not alone. Traditional postpaid carriers, like AT&T and Verizon Wireless, are now offering plans that undercut their postpaid offerings.”
She added that prepaid has long been stereotyped as appealing only to people with bad or no credit, who had to pay a premium for the service. Today, plans are more affordable and competitive, with more phones offered.
“The competitiveness of the prepaid arena has also helped transform the companies’ strategy,” Whitesell said. “As many carriers are now offering more customized plans, there are others that offer exclusive plans at retail stores, such as Straight Talk, Common Cents, and Cricket PAYGo [which] are only available at Wal-Mart. … Therefore, I think customers can find a plan that fits their budget along with a device that can help them fully utilize their plans.”
Verizon…