Verizon Wireless Could Expand Unlimited Prepaid Plan
Verizon Wireless may expand a $50 unlimited prepaid offering it’s been testing in Florida and California to additional markets, a direct threat to rivals Sprint Nextel and MetroPCS.
“The trial has gone very, very well for us,” said Verizon Chief Financial Officer Fran Shammo during a presentation in Boston. “It didn’t cannibalize the base and we actually evaluated our prepaid business and took some share.”
The prepaid plan, known as Unleashed, offers users unlimited voice time, texting and Web. Sprint, with its Boost and Virgin Mobile brands, also sells unlimited pay-as-you-go plans, as does MetroPCS.
Prepaid, which has historically been marketed to lower-income consumers and is more subject to user turnover, makes up a small portion of Verizon Wireless’s business. Verizon had 4.4 million prepaid customers as of the end of June, 3.4% fewer than a year earlier, while the carrier grew its contract customers by 4.6%in the period to 85.3 million.
By contrast, Sprint and MetroPCS lifted their prepaid subscriber rolls by 5.1% and 19%, respectively, as of the end of the first half.
Separately, Shammo said a cut to union workers’ benefits is necessary as the company’s traditional wireline business continues to decline. About 45,000 union employees walked off the job on Sunday after talks for a new contract reached an impasse.
Verizon Communications, based in New York, wants to freeze pensions, tie workers’ pay more closely to performance and require employees to contribute at least $100 a month to their healthcare premiums, among other items. The strike entered its fourth day Wednesday.
Brenda
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