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.