Perhaps sensing increased competition in a segment it has yet to aggressively target, Verizon Wireless bolstered its prepaid smartphone offering with more data capabilities, though the service remains 3G-only.
Verizon Wireless noted that for a limited time, its AllSet Plans would provide smartphone users unlimited domestic calling; 1,000 monthly calling minutes to Mexico and Canada; unlimited domestic messaging; unlimited text messaging to Canada, Mexico and Puerto Rico; and one gigabyte of data access for $45 per month if they enroll in the carrier’s Auto Pay system. Customers can fine-tune their data allotment through what it calls Bridge Data, which allows customers to purchase a data bucket that includes a rollover feature. A 500 megabyte bucket runs $5 and is good for 30 days, so no rollover there; a 1 GB bucket runs $10 and is good for 90 days; and a 3 GB bucket runs $20 and is also good for 90 days.
Verizon Wireless also increased the data allotment for its $60 per month smartphone plan from 500 MB to 2 GB and for its $70 per month smartphone plan from 2 GB to 4 GB. The plans also include use of the smartphone as a mobile hot spot. Despite the greater amount of data, Verizon Wireless’ prepaid plans remain stuck with 3G data services and devices and are not available for access to the carrier’s LTE network.
Verizon Wireless reported industry leading customer growth during the final three months of 2013, though it added just 80,000 direct customers through its prepaid service. This compared with the increasing reliance on the no-contract space from its rivals, though many of them are shifting the contract focus from rate plans to installment payments on devices.
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