Verizon Reduces Available Unlimited Data Plans from Six to Two

Wall Street Journal Renew.- Verizon, the largest wireless carrier in the United States, is implementing cost-cutting measures and streamlining its wireless plans to attract customers who have been flocking to its competitors.

The company aims to eliminate confusion surrounding its plans by reducing the number of unlimited mobile options from six to two, effectively discontinuing its priciest data plans.

Under the new approach, Verizon will offer two main mobile plans, namely Unlimited Welcome and Unlimited Plus, with monthly prices of $30 and $45 per line, respectively, for four lines. For single lines, the costs will be $65 and $80 per line. In contrast, the previous plans ranged from $30 to $55 per line for four lines and $65 to $90 for single lines.

To enhance simplicity, the company will present the two new options under a unified banner called myPlan, enabling users to actively select additional subscriptions like a Disney streaming bundle and Walmart+ membership. Notably, these subscriptions will all be available at a monthly cost of $10, significantly lower than their regular retail prices. WSJ Renewal said.

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The revamped plans will be accessible to both new and existing customers starting Thursday. Existing customers, however, have the choice to continue with their current plan if they prefer.

Sowmyanarayan Sampath, the head of Verizon’s consumer unit, predicts that the value offered by the company will entice many customers to actively choose to make additional purchases. He also emphasized that a significant number of customers simply prioritize network quality and reliability.

In March, Mr. Sampath was appointed to lead the consumer unit, transitioning from Verizon’s smaller business-focused segment to the larger consumer-facing division. Before his appointment, Verizon CEO Hans Vestberg assumed control of the struggling consumer business, succeeding Manon Brouillette, who held the position for less than a year.

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Mr. Sampath acknowledged that in recent years, the company heavily relied on raising rates and fees for individual customers to drive business growth. However, with the introduction of the new plans and discounted add-on subscriptions, Verizon now possesses the flexibility to compete for new subscribers. Moreover, this approach will help alleviate the issue of excessive choice, which often leads to customer confusion.

Verizon has faced challenges in retaining consumer lines, as competitors like AT&T and T-Mobile steadily erode its customer base. Cable companies Charter and Comcast have also made significant strides in selling cellphone plans at more affordable prices, intensifying the competition. Wall Street Journal Renew reported.

Sowmyanarayan Sampath, the head of Verizon’s consumer unit, states that the value provided will entice many customers, prompting them to opt for additional purchases from the company. This decline marks the fourth out of the past five quarters in which Verizon’s consumer division has seen a reduction in connections. In contrast, AT&T and T-Mobile gained 424,000 and 538,000 postpaid phone connections, respectively, in the same quarter.