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!
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