Verizon nudging low-paying customers to cough up more

Verizon is causing a stir with its new email to Visible customers.

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verizon visible switch offer
Verizon wants customers to switch from its prepaid brand to a postpaid offering. | Image by Justin Horowitz
Verizon, much like rivals AT&T and T-Mobile, offers both prepaid and postpaid services. Through brands like Visible, the carrier allows budget-conscious users to access its network at a discount. However, because prepaid users generate less revenue, Verizon has begun nudging customers toward more expensive postpaid contracts.

The cost of switching



BestPhonePlans' Stetson Doggett recently received an email from Verizon, encouraging him to switch from Visible to Unlimited Welcome for $55 per month to obtain greater benefits, such as a discounted iPhone and subscription savings.

Unlimited Welcome is Verizon's cheapest postpaid plan, but it offers the slowest 5G speeds and does not include hotspot data.

The cheapest Visible plan costs $25 per month with taxes and other fees included, while the most expensive one costs $40. Verizon's postpaid plans aren't tax-inclusive, meaning customers will end up paying more than the advertised price.

Unsustainable model


Visible happens to be considerably cheaper than Verizon, but it connects customers to the same network infrastructure. Visible's low prices allow it to compete with MVNOs and cable companies.

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While rock-bottom prices may help a company attract customers, they eventually squeeze profit margins. That's what might be happening with Visible, which explains why Verizon is enticing customers to switch away from it.

Alternatively, with wireless growth slowing, Verizon may be trying to eke out more from existing customers rather than incurring the greater cost of acquiring new customers. Postpaid subscribers also tend to stick around longer due to installment plan terms, whereas prepaid customers aren't bound by long-term contracts and can be easily lost to rivals.

What does Verizon's email signal?
17 Votes

Should prepaid customers switch?


Postpaid plans are more feature-packed than prepaid plans and come with the benefit of device financing. Postpaid service is generally also more reliable.

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For customers who don't require the bells and whistles of postpaid plans, sticking to the prepaid option might be a better idea, especially if they don't want their monthly expenses to skyrocket. For users who require top-notch service, Verizon's offer is worth looking into.
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