Verizon followed AT&T in refreshing its prepaid tariffs, as the operators look to add more value at a time when consumers across the US re-evaluate financial priorities in light of the Covid-19 (coronavirus) pandemic.
Though the prepaid segment typically has higher churn than post-paid, updates unveiled by both operators appear designed to minimise risk and incentivise customers to stick around for the long haul.
Verizon’s trio of new plans include unlimited voice and text, and range from $40 per month for 5GB of data to $65 per month unlimited. It lined up $5 price reductions after three and nine months, with the same sum subtracted if customers choose automatic payments.
Earlier this month, AT&T began offering a discount for prepaid customers who pay upfront for three months of service on its 8GB tariff, supplementing a 12-month option launched in August 2019. These options reduce the $50 pay monthly price to $33 and $25 respectively.
Analysts recently tipped the economic impact of Covid-19 to spark a resurgence in the prepaid segment.
Research by Strategy Analytics in May found a quarter of consumers said they were likely to churn to a less expensive tariff over the next three months.Subscribe to our daily newsletter Back