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Verizon updates prepaid data packages for connected devices

New prepaid data packages said to make choices easier for consumers

Verizon Wireless updated its prepaid data plans for “connected” devices like mobile hot spots and tablets in a move the carrier said should make it simpler for customers to select the correct offer.

The new options include 500 megabytes of data good for one week at $15; one gigabyte of data good for one month for $20; 2 GB for $35 good for two months; 5 GB for $60 good for two months; and 10 GB for $100 also good for two months. Rate plans for smartphones remain unchanged with consumers paying $45 per month for unlimited domestic calling, messaging and 1 GB of data, or $60 per month for 2 GB of data.

Customers can choose to enroll in Verizon Wireless’ Auto Pay program for the new plans, although there is no financial or data benefit to do so. Customers currently enrolled in a data package using Auto Pay can maintain their current data package.

Verizon Wireless has struggled in the prepaid space, giving up market share in the highly competitive segment to rivals. The carrier said it lost 126,000 direct prepaid connections during the second quarter of this year, which followed the loss of 188,000 prepaid connections during the first quarter.

Verizon does not appear to be concerned with the prepaid defections, with CFO Fran Shammo telling investors earlier this year during a conference call that the carrier was not interested in chasing all customers with the lowest price point. Shammo noted that Verizon Wireless’ wholesale business had a strong first quarter, in particular noting that its relationship with prepaid reseller TracFone Wireless resulted in approximately 400,000 net customer additions for the quarter.

Verizon Wireless earlier this year offered prepaid customers using smartphones a 1 GB incentive to sign up for its Auto Pay program, which increased the total data bucket to 2 GB and 3 GB respectively, that offer has since expired, however. Carriers have typically offered a monthly discount on services tied to prepaid customers signing up for an auto pay program. Auto pay programs are seen as lessening the payment risk of no-contract customers.

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