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Verizon Unveils Limited New Prepaid Options
But they're of course designed to convince you to go postpaid...
by Karl Bode Friday 03-Sep-2010 tags: prices · business · wireless
Just yesterday we were discussing how analysts believe Verizon wasn't truly competing in the prepaid space because they were concerned with diminishing the perceived value of the Verizon brand, and having to engage in price competition with smaller carriers. With a flood of recent new prepaid offers, Verizon has announced a new unlimited data package for select smartphone users priced at $30 per month, and a $10 plan with a 25MB monthly cap and 20 cent per megabyte overage fee. As PC World notes this is a mixed bag on value (see chart), with users paying more for their phone, voice minutes and monthly total bill than postpaid, but with no ETF. By restricting qualified phone models and making users pay a monthly premium for voice and data, Verizon's trying to actually discourage users from going prepaid.

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BF69
Premium
join:2004-07-28
Camden, TN

Same price as post-paid

Exact same amount the rip off the post-paid customers. I'm not sure what they think someone is going to do with a measly 25 MB( 853 KB a day ). At least at&t gives you 200 MB.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Same price as post-paid

that can't be! VZ is the king of all! especially since they're you're only option! So its gotta be a goodd deal!.
xsiddalx

join:2005-03-11
Chicago, IL
Perhaps VZ is on to something...checking your favorite "social networking thingie", weather, news, coupon web site for free drinks, map providers and a few searches for validation of trivia at the club...what does that take in terms of bandwidth?

I do recall paying 1.20 an hour or so to a packet network to get to an ISP at one time (the phone call was free). It was valuable to me, not to very many others at the time...

Price should reflect value, not costs...apparently there are a ton of people out there paying for more bandwidth than they need (if priced on average usage). That reflects value (measly in your opinion but maybe alot in someone else's).

Of course, those economists out there will tell you price reflects costs when there is "perfect competition". We need much more of that before we will see costs overcome value...

Pre-paid will eventually become the norm...no reason the carriers need to extend credit if the customers will pay for it upfront (they already sell their devices that way, as do cable companies).

said by BF69:

Exact same amount the rip off the post-paid customers. I'm not sure what they think someone is going to do with a measly 25 MB( 853 KB a day ). At least at&t gives you 200 MB.

n2jtx

join:2001-01-13
Glen Head, NY
Reviews:
·Optimum Online

Would You Expect Anything Else?

Is anyone honestly surprised by Big Red's attitude? Both AT&T and VZW have such huge market shares they don't have to really "compete". People like my sister are convinced brainwashed that VZW is the best wireless available and freely shells out over $100/month on her family plan for what she could get cheaper elsewhere. Funny thing is, her phone does not work at my home because VZW happens to have poor coverage at my location. The other three carriers (plus MetroPCS soon) work great as they are on a nearby water tower :/
--
I support the right to keep and arm bears.
hottboiinnc
ME

join:2003-10-15
Cleveland, OH
Reviews:
·WOW Internet and..
·Time Warner Cable

Re: Would You Expect Anything Else?

and T and V mastered what they wanted to. Brain washing their customers. And the fact that "so and so has them; so they must be good- we gotta get them too". or "we have to have them so i can talk to so and so for free, everyone has blah-blah now, because the others all just suck".
--
www.twopugsbrand.com Kosher, Vegan, and Organic Certified Dog and Cat treats/foods and other products! www.etsy.com/shop/snakx4u/ Organic, Kosher, Gluten Free, Vegan Human Baked Goods
BosstonesOwn

join:2002-12-15
Everett, MA
Reviews:
·Comcast

Re: Would You Expect Anything Else?

When my contract is up im taking all 4 of my phones to sprint.

Im tired of the crap they pull. Plus, I will get 4 android phones with calling anywhere for much less then I pay now for 2 androids and 2 basic.
--
"It's always funny until someone gets hurt......and then it's absolutely friggin' hysterical!"
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Would You Expect Anything Else?

if Sprint only offered BBs with EVDO Rev. A they'd be all set. But instead they only use EVDO 0.

Darkflight
4G Stitch626

join:2001-03-03
Rowland Heights, CA

Re: Would You Expect Anything Else?

BB Tours (9630) and Bolds (9650) are EVDO RevA devices. Exactly just like the Verizon versions...
hottboiinnc
ME

join:2003-10-15
Cleveland, OH

Re: Would You Expect Anything Else?

2 products out of how many?

cableties
Premium
join:2005-01-27

Verizon's trying to actually discourage users..

...from going prepaid!

AMEN Karl! Amen! But will the greater good recognize this....(nope)...
InfinityDev

join:2005-06-30
USA

more appealing

Of course they're not going to make it cheaper for people to be off contract. They're not stupid!

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
Reviews:
·Verizon Online DSL

Re: more appealing

said by InfinityDev:

They're not stupid!
My eyes swell with tears; that is the nicest thing ever said, on this board, about Verizon. : ...}

compuguybna

join:2009-06-17
Nashville, TN

Re: more appealing

Just like their $80 for 5gb on prepaid mobile broadband (using a usb device). What a rip!!

batterup
I Can Not Tell A Lie.
Premium
join:2003-02-06
Netcong, NJ
Reviews:
·Verizon Online DSL

Re: more appealing

said by compuguybna:

Just like their $80 for 5gb on prepaid mobile broadband (using a usb device). What a rip!!
Who has it cheaper with as good coverage?
blguy07

join:2010-01-01
Iowa
Reviews:
·T-Mobile US
·Clearwire
·AT&T Wireless Br..
·Comcast
·AT&T DSL Service
·RCN CABLE

Guys they just market these to higher income people

Its like with buying a nice $400,000 condo in Chicago but it comes with $8000 property tax per year.

Some people have no choice because they live in rural areas but they also don't have access to Whole Foods, Starbucks, DSL, cable, restaurants, pools, BestBuy and they got drive more and pay more for gas, etc.

pbg

@optonline.net

really!?

Most of the people who opt for pre-paid are either poor.. have bad credit or both and would have to pay a deposit anyway. So paying up front for the phone is no big deal. They arent discouraging those who have no other option. The best way to discourage prepaid is to not offer it at all. No credit -- no phone.

LightS

join:2005-12-17
Waco, TX
Reviews:
·Time Warner Cable
·RoadRunner Cable

Re: really!?

No, not true. I know various people who are far from poor, and use prepaid. Why?! No random fees, no garbage contract, and freedom to choose.

You can't generalize "most of the people who opt for pre-paid" because every person is different.

I think the best way to discourage prepaid is exactly what Verizon is doing. If they don't offer it, they'll get bashed -- for not offering a pre/post-paid option. If they offer it, but at high prices, people who are fixed on getting Verizon will see "hmm. it's cheaper per month if i get a contract..."
pabster

join:2001-12-09
Waterloo, IA
Reviews:
·CenturyLink
·Verizon Wireless..
·Mediacom
I think it's a fair stereotype but that is changing rapidly. There's plenty of "well off" folks out there on prepaid of various sorts.

I'll never sign a contract for cellular service of any sort...there's no reason to. Plenty of great prepaid options that are quite competitive. No one should be surprised at Verizon's rather lackluster options, given their history.
blguy07

join:2010-01-01
Iowa
Reviews:
·T-Mobile US
·Clearwire
·AT&T Wireless Br..
·Comcast
·AT&T DSL Service
·RCN CABLE

1 edit

Re: really!?

But its mostly those who don't want iphone/blackberry/pda.

I still have blackberry 8310, month-to-month on ATT after my contract nearly half year ago and I opt out from data plan. Next month when iphone free case program expires and supposedly (according to rumors) release a revised version of Iphone 4 with improved antenna design, I am buying and renewing by contract.

UPDATE: I actually ordered iphone now. Its unlikely they will release a new model with revised antenna as some rumors suggested. I love "portable internet"
xsiddalx

join:2005-03-11
Chicago, IL
said by pbg :

Most of the people who opt for pre-paid are either poor.. have bad credit or both and would have to pay a deposit anyway. So paying up front for the phone is no big deal. They arent discouraging those who have no other option. The best way to discourage prepaid is to not offer it at all. No credit -- no phone.
Do you have any hard stats on this?

Most of the prepaids I know (not that I'm a general indicator) are still looking for cheap LD, disposable/anonymous phones, and/or control over their costs, which is easier with prepaid (moreso than landline LD at least). There are other reasons I've heard (i.e. cheaper to do VOIP and use a prepaid cell for rest)...dynamic market for sure.

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