Now that its "More Everything" holiday promotions have ended, Verizon is cutting prices by $10 a month on most of its data plans under 10 GB. The nation's largest wireless carrier is also letting customers opt for more data for the same prices they are currently paying. The new pricing promotions are effective immediately.
For example, a More Everything plan that includes 1 GB of data now costs $30, down from $40 and 2 GB of data now costs $40, down from $50 (those prices are for the data alone; phone service is an additional charge). The price for customers currently paying $90 for 8 GB has only dropped by $5 to $85. However, customers can also decide to continue paying their current prices and get an additional 1 GB of data for free.
The moves appear to address recent agressive pricing strategies by some of Verizon's competitors. Sprint, for example, launched a promotion in December, offering cellular service for current Verizon and AT&T customers at half the cost of their current plans.
New Edge Smartphone Offers
Available for a limited time, Verizon's latest pricing move also allows More Everything customers with data allowances of 6 GB or more to add smartphones through the Verizon Edge installment program for $15 per month. Each additional line will come with a $25 access discount.
Verizon's More Everything plans come with unlimited talk and text, along with a range of data allowances at different prices. The shareable data option lets customers include up to 10 devices on a single plan, with either an individual or multi-line family plan.
Under its new promotion, Verizon is offering a one-time, $100 credit per qualified line to new customers who transfer their wireless numbers from other carriers and activate new Verizon smartphones through the Edge program. The company is also adding new data options of 12 GB to 16 GB for More Everything customers with "greater appetites for data and all that it enables, like streaming video or sharing large files."
Pressure from Sprint, T-Mobile . . . and Google?
As Brian X. Chen noted Wednesday on the New York Times Bits blog, the new pricing strategy is "surprising given that just days ago, Verizon said on its financial earnings call that it would not compete on price." Chen quoted an industry analyst who suggested that Verizon is "starting to feel the pressure on price with more than just a small set of customers."
According to its most recent financial report, released January 22, Verizon Wireless added 2.1 million retail net connections in the fourth quarter of 2014 -- most of those (2 million) were postpaid connections. Its churn rates -- the rate at which customers go -- also increased slightly during that period.
Late last year, Verizon CFO Fran Shammo acknowledged his company was feeling the pressure from increased competition and the industry's continuing price wars. Another potential threat could come from Google's reported plans to begin selling cellular services this year through reseller agreements with Sprint and T-Mobile.
Posted: 2015-03-04 @ 7:16pm PT
Pricing has not come down enough, also Verizon should include free radio streaming like T-mobile does -- that would be more than fair for everyone and Verizon could gain more subscribers.
Posted: 2015-02-06 @ 1:32pm PT
Verizon will need to be more creative at pricing so that customers are getting more bang for the buck.
Posted: 2015-02-06 @ 12:44pm PT
Normally GB means gigabyte. However, with AT&T and Sprint, it probably means gigabit.
So, my Sprint 2-year plan will be reduced by $10 a month. No, I didn't think so.