Home - , , - Selectel Eliminating $65 Plan and Increasing $50 Plan Price to $55

Selectel Eliminating $65 Plan and Increasing $50 Plan Price to $55

According to an email sent to dealers today, Verizon MVNO Selectel Wireless will be making some changes to its monthly plans effective April 1st:

  • The $65 Mega Data Plan, which includes unlimited voice minutes, unlimited messaging and 4 GB of data per month is being eliminated.
  • The price of the $50 Data User Plan is being increased to $55/month. That plan comes with unlimited talk, unlimited messaging  and 2 GB of data.

The email doesn't say if current $50 and $65 plan users will be grandfathered and allowed to keep their plans and pricing. I suspect Selectel's silence on the subject means no grandfathering

In the email, Selectel's president says the changes are necessary because the $50 and $60 plans, which are less profitable than lower priced plans, are more popular than Selectel expected and because users of those plans are using more of the included data than projected.

Whatever the reason, eliminating one popular plan and raising the price on another isn't going to help Selectel's sales. Prepaid prices gave been steadily falling over the last 20 years and that doesn't seem to be changing. Verizon is cutting plan prices next month and Red Pocket is rumored to be launching an aggressively priced Verizon based service soon.

Selectel does have one advantage over its competitors, in that it's the only Verizon based prepaid service that offers no extra cost off-network roaming.  Roaming is expensive and it makes sense for Selectel to charge a premium over its competitors. But I don't understand why they eliminated the 4 GB plan rather than raising its price. That essentially forces anyone who needs Verizon coverage, roaming and 4 GB to a postpaid plan costing about $130/month. It seems like Selectel could have raised the $65 plan to $75 and still kept many of their current $65 plan customers.

Here's the email Selectel sent to its dealers:
Over the past few months we have experienced a dramatic increase in the percentage of the number of $50 and $60 plans that are being purchased. We have relied on our lower priced plans including our $15, $30 & $40 to offset the expense we incur for higher voice and data charges from the higher plans however this increase in the percentage of the customers on the higher level plans combined with the fact that many of those customers are using the maximum amount of data allowed in their plan has raised our average cost per MDN significantly. 
Effective April 1, 2014 the following changes will go into effect:
The Selectel Wireleess $50 Plan will increase to $55.
The $65 Plan will be discontinued until further notice.
 
We would like to take this opportunity to thank you for your commitment in promoting Selectel Wireless to your customers. By promoting all of the plans offered by Selectel Wireless, you will enable Selectel Wireless to remain competitive in the prepaid wireless industry. We value our dealer partnerships and look forward to growing our businesses together for many years to come! 
Matt O'Flaherty
President
Selectel, Inc.

Related:
Verizon and Verizon MVNO Prepaid Plans Compared

7 comments:

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  1. They are over confident. Or facing new limits from Verizon. Arrogance is hard to realize though. Hopefully they won't be another TalkForGood dot gone.

    One year from now, all those $75 per year accounts will dramatically decrease. There are other very good options.

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  2. I guess that it originally had those plans to attract people from Page Plus. I also agree that this is going to hurt Selectel. I have an annual plan with them so I always can make a call in a remote area. It works great for that purpose. Although, I worry that these plan changes are the signaling of trouble Selectel might be having.

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  3. We use the annual plan with Flex Card, so we only give them about $10/month.
    They have to balance growth against costs, and I am sure they studied this carefully. I am not worried about their future because their plans are still reasonable when you include roaming, they provide good dealer support, and I believe many people will leave PagePlus once Am Movil studies Pplus operations and starts making changes to enhance revenue. I suspect they will lose dealers, and reduce others to pin pushers, just like they did with Simple Mobile. Some dealers are still in denial I believe, wishful-thinking based on promises not to make changes (like speed reductions for streaming and heavy use, and management and CS migration). PagePlus should be OK for another year or so, but after that I think Selectel will pick up more dis-satisfied customers. I would not be surprised to see Selectel introduce another high data use plan in the future, after they determine the impact of these changes on costs, growth and churn.

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  4. I don't believe this is going to hurt them. Most of their customers, just like PagePlus, are using the $30 plans. The number of folks that are on the $65 is really small, compared to the $30 plan. Changing the $50 to $55 is probably just to align their plan directly with PagePlus's plan. Side-by-side, consumers can easily see that the $55 plan is now the same as PagePlus EXCEPT Selectel has zero roaming charges. If I had to choose between the two companies for the the $55 plan, Selectel would be my choice. Even though I most likely will never encounter roaming where I travel, it is better to have the additional coverage.

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    Replies
    1. FYI, Page Plus' $55 plan has 2.5 GB vs Selectel's 2 GB.

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  5. Neither page plus or selectel offers data when roaming. If selectel is trying to attract page plust customers, they're going to have a hard time.

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  6. Data being throttled. Tried a few times and same result. 90% less than pageplus. tested on same type of phone. Getting .2 mb instead of 2Mb with pageplus. Disappointing.

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