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Verizon Starts Selling Prepaid Service Via Exclusive Dealer Partners

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According to a news report, Verizon Wireless has begun selling prepaid wireless services through exclusive dealers. To date, the Big Red has already launched five stores -- two in Las Vegas, Nevada, a couple more in Phoenix areas, and one in Socorro, Texas. All of these stores are currently being operated by an exclusive dealer called My Peak Wireless.

Traditionally, major wireless carriers in the United States have not put much attention to the prepaid wireless market, preferring instead to focus on the postpaid wireless market, which is considered more lucrative. But recent years have seen an increasing level of competition in prepaid, with the gap between prepaid and postpaid ARPU (average revenue per user) continuing to shrink. The result is that more and more wireless carriers now are starting to boost their efforts in attracting more prepaid customers.

It appears that the biggest wireless carrier in America (in terms of customer base) is not an exception to this. Apart from selling prepaid wireless services via exclusive dealers, Verizon Wireless has also introduced data plans with prices ranging from $50 to $70, which should improve its share in the market.

During the third quarter of 2016, the Big Red was able to gain a net 83,000 prepaid subscribers, which is way better than the 80,000 customer losses it posted during the same quarter the previous year. Fran Shammo, the chief financial officer of Verizon, stated last year that part of the carrier’s strategy is to stop the bleeding or at least lessen the customer losses, specifically preventing subscribers from shifting to competitors such as T-Mobile or Sprint. According to Shammo, Verizon would rather have its customers shift from its postpaid plans to its prepaid options, as opposed to defecting to other rival networks. Moreover, Shammo said that the Big Red is looking to take full advantage of its America Movil contracts for services such as StraightTalk or TracFone in order to offer prepaid services.


Source: FierceWireless

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15 comments:

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  1. So much for the "we don't really care for prepaid, that's what MVNOs are for" sentiment expressed a while ago.

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    1. They are never going to be competitive in this arena, they are only doing this to generate a tiny media hoopla.

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    2. Right on, Big Red wants your $50 and $70 per month.

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    3. At $50, you become valuable to Verizon.

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    4. Verizon Prepaid is pretty competitive if you're using the Walmart plans. $50/7GB for Verizon vs $60/8GB at GoPhone, or $70/12GB for Verizon. Cricket's $50 plan is 8GB, but you must suffer high latency and a throttle to get that extra 1GB.

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    5. Good points, really.



      Does Verizon Prepaid have anything that comes anywhere close to Cricket's $65 or $70 a month "unlimited" (which, from seeing anecdotes, lets you use a couple hundred GB a month of data before Cricket gets unhappy)?

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  2. The sleeping giant awakens.

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  3. What about taxes and fees? As usual reading $50 plan means you have to pay 60+ ?

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    1. Try Callingmart. I pay 47.50 (usually with monthly promotions) per month. So, less than retail price without taxes :)

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  4. Fran Scammo eats his words twice this year. That is news in itself. First the guy says "unlimited data is dead" and "throttling is not an option", then he says "prepaid is not our market, we rely on our wholesalers there". Too bad the network is solid, but the egos at corporate Verizon and the pricing aren't worth the trade-off. I'll stick with Cricket.

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    1. To me, the problems of going from the relative freedom of GSM to the CDMA hell of Verizon is even worse than getting Flammo flambe'ed over there.

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  5. OMG!!!!! They Did it...I need a store....

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  6. any information on how to become a dealer in Florida ??

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