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Satellite PR News
reality is that Verizon has been ignoring prepaid for the better part
of a decade. However, now that all major postpaid carriers
virtually eliminated contracts in favor of doing away with device
subsidies, the line between postpaid and prepaid has been materially
blurred. Postpaid customers were considered more valuable,
that simply is no longer the case. In addition, Verizon has
stated that it feared that increasing the value of prepaid would
cannibalize its postpaid customers.
What transpired, though, is
that its competitors have been stealing customers who have found
greater value elsewhere. In addition, the network advantage
Verizon has enjoyed for so long has largely evaporated at this point.
Verizon has finally come around to understanding that it's
cannibalize your own customers than lose them to competitors.
all of its failures, Sprint actually figured this out a decade ago ;-).
a perfect example that illustrates that Verizon is truly investing in
prepaid. Opening and managing dedicated physical stores is a
non-trivial investment, and these will be dedicated to prepaid.
mitigate a lot of the headache, they will be taking the exclusive
dealer route, in lieu of company owned stores. This is a
smart move to
get into this space, though does still represent an area of expertise
in which Verizon is clearly lacking. Hopefully the selected
will "play nice", which is sometimes a wild card in the wild wild west
of prepaid retailing.
$168, this smartphone is a fantastic deal with its 5" HD Super AMOLED
display, 5MP rear camera, and 16GB of internal storage. It
doesn't have the annoying curved bezel like a lot of the higher end
Samsung phones, which make it very difficult, if not impossible to find
an appropriate glass screen protector. So what sets this
Samsung's flagship phones? You'll find a smaller battery,
screen (compare to the 5.1" Galaxy S7), lower camera resolution, slower
processors, and less RAM. While that sounds like a lot,
speaking, outside of obviously shorter battery life, you likely won't
even notice. This is basically the higher end device from two
ago, now being sold as a mid-tier device. Definitely worth
if, for some reason, you're a Verizon fan.
Mobile is stating that removing phone subsidies will free up cash that
they can subsequently put towards covering the cost of the service
plan, which they can then offer for free. To be honest, I
laughed out loud when I read this announcement. I don't know
their execs are smoking, but they should really share some with the
rest of us! Seriously though, I could see them offering some
service for free, with options to buy up, which would really be copying
the business model of one of their MVNOs, FreedomPop. There's
they're going to offer only free service plans; they need to deliver
bottom line profit for a flailing Sprint mother ship!
has done a spectacular job disrupting the market in recent years.
could even argue that they're responsible for the shift away from phone
subsidies across all major carriers. An increase in their
stock by 50%
is quite impressive. In terms of a merger, whether it be with
or a cable provider, or an acquisition by Google, I think that would
overall be negative for the company and customers. T-Mobile
continue doing what they're doing to drive the industry forward.
real question really is can T-Mobile sustain their disruptive behavior
without bleeding profits. I suspect that's the real reason
their motivation to merge or to be acquired.
T-Mobile is taking a page out of the prepaid play book by eliminating
all additional taxes and fees that postpaid customers see on a typical
bill. This move further blurs the line between prepaid and
but also cuts deeply into T-Mobile's profits, as these fees still have
to be paid by the company. Note, however, that this is
for customers who enroll in autopay.
They also announced that
they will apply a $10 credit per line for customers who use 2GB or less
of data each month. The reality is that this is really more
marketing that anything tangible. Customers will use the data
need to use. For customers who are on plans with more data
need, they will get back money they would have seen had they switched
to a lower plan. Some customers on the border of this limit
more diligent about using WiFi to try to get the credit, however, for
the most part it's like transferring marketing spend to this subset of
Even more interesting is that T-Mobile is now signing
a contract with customers that it will never increase the price of your
plan (assuming you don't make any plan changes). I
promotions, whether it's for wireless, cable, or Internet, as they
typically last 12 months before the price increases dramatically.
lifetime promise is definitely a different approach, and is
great way to further foster customer trust!
Cellular is jumping on board with beefed up data plans. Its
now has 3GB vs. 2GB, its $60 plan moves up from 5GB to 6GB, and it
launched a new $75 plan with 12GB. We're going to continue
increased data allowances as carriers continue competing, while
delaying a move to unlimited high speed data as long as they possibly
carrier playing the data bundle game! The $40 plan moves up
from 2.5GB, the $60 plan increases from 10GB to 12GB, and the previous
$50 plan that increased the data bundle from 5GB to 8GB moves from its
trial to permanent. The only plan that actually got
their previous $25 1GB plan, which increased to $30. And they
have the $70 unlimited plan. If you're an existing customer,
your plan on your account, and call them if the change hasn't yet been
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