Verizon Chief Financial Officer Fran Shammo tells us at a presentation in Boston of their new $50 unlimited prepaid offering, citing its profitability even though it is only currently in a small test market.
“The trial has gone very, very well for us,” he said. “It didn’t cannibalize the base and we actually evaluated our prepaid business and took some share.”
What Shammo is referencing, of course, is the new plan called ‘Unleashed’, which is currently being tested in small markets around Florida and California. The plan is in direct competition with Sprint Nextel and MetroPCS. Verizon’s prepaid share has been fairly low, even losing 3.4% in the course of a year. By contrast, Nextel and MetroPCS saw increases of 5.% and 19%, respectively.
Verizon hopes to restore their prepaid share with this plan, and it certainly seems that they are on their way to doing just that.