Verizon, AT&T introduce new prepaid plans ahead of iPhone refresh
Even as rumors continue to swirl that Apple is preparing a cheaper, prepaid version of the iPhone, Verizon and AT&T on Tuesday announced new prepaid plans, just weeks ahead of Apple's expected 2011 iPhone introductions.
Verizon unlimited
Verizon will begin offering on Thursday a $50 a month pre-paid plan for select phones, providing unlimited talk, text and data, according to the Wall Street Journal. Big-box retailers Best Buy, Wal-Mart and Target will partner up to sell the plan.
"This is a very competitive market, and we want to make sure we have a price portfolio to fit a greater number of customers," said Brenda Raney, a Verizon spokeswoman. "In these times, there are some people who would prefer living on a prepaid plan."
Verizon reported 4.4 million prepaid subscribers for the quarter ending in June, showing a 3.4% decline compared to the year ago period. On the other hand, postpaid subscribers amounted to 85.4 million, a 4.6% year to year increase.
The carrier?s main rivals in the prepaid business are Sprint, via Virgin Mobile and Boost, and MetroPCS. The former reported 13.8 million prepaid customers in June, with the latter amassing 9.1 million prepaid subscribers, a 23% and 19% increase for the period, respectively.
MetroPCS has similar unlimited prepaid plans available for as low as $40 per month, and Sprint?s Boost customers who pay on time can lower their bills to as little as $35 per month.
Verizon, however, will not lower unlimited plan prices below $50 as to ?prevent cannibalization of its postpaid subscribers,? said James Ratcliffe, a Barclays Capital analyst.
Verizon?s initial unlimited prepaid lineup will include four handsets from LG, Samsung and Pantech for new customers, though some older prepaid phones can be used for the plan.
Meanwhile, unlimited postpaid plans have become scarce as carriers have struggled to keep up with heavy data usage by customers. Earlier this year Verizon announced the termination of unlimited data plans for postpaid consumers purchasing smartphones, including the iPhone. AT&T has also capped new iPhone and iPad data plans at 2GB per month.
But, Sprint is still offering unlimited data plans with its smartphones, with a recent report suggesting that the nation?s third largest carrier won't discontinue such plans in the event it launches the iPhone later this year, as has been rumored.
GoPhone
AT&T will begin offering a new GoPhone plan on Sept. 18, along with the option of an international long distance package for prepaid customers. The national plan will cost $25 monthly and include 240 nationwide voice minutes and unlimited, nationwide messaging, while the international feature will cost prepaid customers $10 and include 250 minutes to over 50 countries for 30 days.
The carrier also announced that prepaid customers can now roam in Canada for $.39 per voice minute, $.25 per message sent and $.20 per message received.
The iPhone 5 is expected to be launched in early to mid-October, with a growing number of reports suggesting that Sprint will join AT&T and Verizon in offering at least one iPhone model to American consumers. On Tuesday, however, a new rumor surfaced indicating that the mobile operator may only launch the iPhone 4 this October, as Sprint sales associates were reportedly being briefed only on the launch of the existing handset.
It has been widely suggested that Apple will launch two distinct iPhone models this year, an entry-level, dubbed the iPhone 4S, and a high-end iPhone 5. The former has been rumored to be a cheaper iPhone 4, one that could potentially be sold by carriers with prepaid contracts instead of regular two-year agreements.
Commenting on the prepaid market and the possibility of a cheaper iPhone option, Tim Cook explained in February that Apple doesn?t want its products to be ?just for the rich,? adding that the company is ?not ceding any market? and is planning ?clever things? to compete in the prepaid handset market.
Verizon unlimited
Verizon will begin offering on Thursday a $50 a month pre-paid plan for select phones, providing unlimited talk, text and data, according to the Wall Street Journal. Big-box retailers Best Buy, Wal-Mart and Target will partner up to sell the plan.
"This is a very competitive market, and we want to make sure we have a price portfolio to fit a greater number of customers," said Brenda Raney, a Verizon spokeswoman. "In these times, there are some people who would prefer living on a prepaid plan."
Verizon reported 4.4 million prepaid subscribers for the quarter ending in June, showing a 3.4% decline compared to the year ago period. On the other hand, postpaid subscribers amounted to 85.4 million, a 4.6% year to year increase.
The carrier?s main rivals in the prepaid business are Sprint, via Virgin Mobile and Boost, and MetroPCS. The former reported 13.8 million prepaid customers in June, with the latter amassing 9.1 million prepaid subscribers, a 23% and 19% increase for the period, respectively.
MetroPCS has similar unlimited prepaid plans available for as low as $40 per month, and Sprint?s Boost customers who pay on time can lower their bills to as little as $35 per month.
Verizon, however, will not lower unlimited plan prices below $50 as to ?prevent cannibalization of its postpaid subscribers,? said James Ratcliffe, a Barclays Capital analyst.
Verizon?s initial unlimited prepaid lineup will include four handsets from LG, Samsung and Pantech for new customers, though some older prepaid phones can be used for the plan.
Meanwhile, unlimited postpaid plans have become scarce as carriers have struggled to keep up with heavy data usage by customers. Earlier this year Verizon announced the termination of unlimited data plans for postpaid consumers purchasing smartphones, including the iPhone. AT&T has also capped new iPhone and iPad data plans at 2GB per month.
But, Sprint is still offering unlimited data plans with its smartphones, with a recent report suggesting that the nation?s third largest carrier won't discontinue such plans in the event it launches the iPhone later this year, as has been rumored.
GoPhone
AT&T will begin offering a new GoPhone plan on Sept. 18, along with the option of an international long distance package for prepaid customers. The national plan will cost $25 monthly and include 240 nationwide voice minutes and unlimited, nationwide messaging, while the international feature will cost prepaid customers $10 and include 250 minutes to over 50 countries for 30 days.
The carrier also announced that prepaid customers can now roam in Canada for $.39 per voice minute, $.25 per message sent and $.20 per message received.
The iPhone 5 is expected to be launched in early to mid-October, with a growing number of reports suggesting that Sprint will join AT&T and Verizon in offering at least one iPhone model to American consumers. On Tuesday, however, a new rumor surfaced indicating that the mobile operator may only launch the iPhone 4 this October, as Sprint sales associates were reportedly being briefed only on the launch of the existing handset.
It has been widely suggested that Apple will launch two distinct iPhone models this year, an entry-level, dubbed the iPhone 4S, and a high-end iPhone 5. The former has been rumored to be a cheaper iPhone 4, one that could potentially be sold by carriers with prepaid contracts instead of regular two-year agreements.
Commenting on the prepaid market and the possibility of a cheaper iPhone option, Tim Cook explained in February that Apple doesn?t want its products to be ?just for the rich,? adding that the company is ?not ceding any market? and is planning ?clever things? to compete in the prepaid handset market.
Comments
However, I have no problem with them bringing back the unlimited data plans, and lowering prices across the board to be more "competitive". (if they ever do that)
I honestly don't think we are ready for prepaid phones here in the usa. Consumers are too used to the subsidized pricing from 2 year contracts and expect phones to cost $200 or less. Everyone I have talked to about the actual prices of the iPhone that people pay in the UK and other countries where pre-paid is more prominent call paying $600 for a cell phone ridiculous.
However, I have no problem with them bringing back the unlimited data plans, and lowering prices across the board to be more "competitive". (if they ever do that)
I'm ready for a voice plan lower than $40 a month.
I rarely talk on the phone anymore... but I pay more for voice than either texting or data.
I'm ready for a voice plan lower than $40 a month.
I rarely talk on the phone anymore... but I pay more for voice than either texting or data.
Agreed. I love the iPhone, but the amount they charge per month for this (and most smartphones) is making it not really worth it anymore.. People don't talk on the phone as much anymore.. Texts are incredibly cheap on ATT's end.. Wifi hotspots are more common.. I don't use much 3G data.. It's crazy how much people have to pay to keep up with technology. I want a smartphone for what it can do as a pocket computer, not necessarily as a super high end phone service. After this contract, I may just go with a dumbphone and iPod Touch. It's annoying, first world problems.. But, it really feels like the cell companies are just screwing everyone because smartphones are popular. No way my voice and data plans should be this high.
I don't use much 3G data ... No way my voice and data plans should be this high.
All the US carriers continue to stick with unlimited plans, which seem quite unfair to those of us who don't use much voice and/or data.
The plan I have in China is US$7 a month for 150 MB of data and 50 minutes of voice. This is all I need. Why am I paying AT&T close to $70? That GoPhone plan looks promising but there's no mention of data.
My next iPhone will be purchased unlocked and I don't want to pay a monthly rate that includes a subsidy I haven't utilized. I think we should pay for what we use. Let those who use gigabytes of data every month pay for it.
Unlimited plans really just cause us low usage customers to subsidize the heavy users.
All the US carriers continue to stick with unlimited plans, which seem quite unfair to those of us who don't use much voice and/or data.
The plan I have in China is US$7 a month for 150 MB of data and 50 minutes of voice. This is all I need. Why am I paying AT&T close to $70? That GoPhone plan looks promising but there's no mention of data.
My next iPhone will be purchased unlocked and I don't want to pay a monthly rate that includes a subsidy I haven't utilized. I think we should pay for what we use. Let those who use gigabytes of data every month pay for it.
Unlimited plans really just cause us low usage customers to subsidize the heavy users.
No one is offering unlimited plans anymore.
AT&T offer 200MB for $15/month and the minimum voice plan required for the iPhone is $40 for 450 min. This is a total of $55.00. Why are you paying $70?!
I honestly don't think we are ready for prepaid phones here in the usa. Consumers are too used to the subsidized pricing from 2 year contracts and expect phones to cost $200 or less. Everyone I have talked to about the actual prices of the iPhone that people pay in the UK and other countries where pre-paid is more prominent call paying $600 for a cell phone ridiculous.
However, I have no problem with them bringing back the unlimited data plans, and lowering prices across the board to be more "competitive". (if they ever do that)
Well even on a 2 year contract your paying over $500 for a phone, just over a 2 year time period as part of your contract.
I brought my iPhone from Apple fully unlocked when the iPhone 4 came out, I can switch to nearly any network in the world just by popping a sim card in, and I can cancel my contract (which is about 50% cheaper then the 24 month alternative)
Prepaid where you then buy a 30 day unlimited addon is hardly new, Three UK have been doing it for a long while, and it has turned out successful for them.
Translation: No one has any money, and we need a cheap plan. Plus, people are on to our pricing nonsense.
I honestly don't think we are ready for prepaid phones here in the usa.
Then how do you explain this?
"... Virgin Mobile and Boost, and MetroPCS. The former reported 13.8 million prepaid customers in June, with the latter amassing 9.1 million prepaid subscribers, a 23% and 19% increase for the period, respectively."
ISTM that the prepaid market is growing rapidly.
I use a TracFone (really dumb phone) for cheap voice calls.
I could buy a new iPad every year with the money I save over a smartphone plan (android or iPhone).
I use an iPad (a better web machine anyhow) and only pay for the months I want cellular access - usually when I'm away from home on long vacations.
I use a TracFone (really dumb phone) for cheap voice calls.
I could buy a new iPad every year with the money I save over a smartphone plan (android or iPhone).
Or use AT&T deaf plan that have unlimited data (texts, etc) with no voice while you use dumb phone
That's what I call competative!
What does this have to do with the iPhone?! You still can't get prepaid data plan with AT&T (maybe Verizon?) for the iPhone even with unlocked ones.
Not officially, but I have have used a locked iPhone 3GS on my GoPhone plan from day one. I set it up with a non-iPhone smart phone and then switched out the SIM card. Works perfectly and have never had a problem.
They will continue pushing the other guys lower
Not officially, but I have have used a locked iPhone 3GS on my GoPhone plan from day one. I set it up with a non-iPhone smart phone and then switched out the SIM card. Works perfectly and have never had a problem.
Does not work anymore. It used to work before the iPhone 4. But it seems with iPhone 4 they can tell and they will block the data. i have a friend who went to AT&T store with his unlocked iPhone 4. They even game him a micro-SIM cards. Bought the data plan and it did not work. They told him the GoPhone data plan will not work on the iPhone 4 and he need to use post-paid account. He got his money back from AT&T and switched to T-Mobile.
You could always activate a go phone sim and place in an iPhone. Cheap calling and texting plan for walking around, full iPhone capabilities when you have wifi. If you are around wifi a good part of the day, that's a way around the high iPhone data plans. Several bids on YouTube show you how to do it.
I'm planning on going this route with the next-generation iPhone. Even if I add a data package, I think I'd average about $18 per month in AT&T GoPhone charges.
Unless there will be an option to have a non-data iPhone, which could actually be attractive. If my daughter's phone cost me $25/mo for 240 minutes and texting (I won't enable texting now on principal) with wifi only, that would be a perfect plan. I'd almost consider it myself. (Alas my wife wouldn't... she loves her 3G data.)