Verizon’s $70 Unlimited Plan for Limited Market
In response to Sprint Nextel’s pricing strategy, Verizon Wireless announced through their spokeswoman that they will test a $70 bundle of unlimited calls. Verizon also made public the availability for sale of Droid Pro on their website at promotional prices for two-year contract – $179 – and $100 for mail-in.
What is Verizon’s doing is obviously designed to counter-attack Sprint’s plan “Any Mobile, Any Time” which offers users for $70 unlimited called in any network carrier. Verizon came with a free $20 credit for customers who signed up for a $59.99 contract that offers unlimited text messages and mobile-to-mobile calls or those who signed up for a $29.99 contract for unlimited data access. Therefore, the aim of the pricing campaign was to offer an alternative in cost to the competitor’s existing one.
Verizon’s strategy was to maintain the most affluent customers. Their direct marketing campaign is not widely available, only certain customers being offered the promotion. The Verizon’s representative didn’t mention if the testing campaign will broaden or how much it will last.
Sprint’s spokeswoman is confident in their product offering, stressing the point that by “Any Mobile, Any Time” campaign, despite Verizon, the company bids a competitive price for calls in all carrier networks “We believe Sprint’s plans offer the greatest value for customers.”
Verizon also tried to make a defensive step towards Sprint a month ago, when they offered a $15 data plan. Now, Verizon is trying to keep the pace in this competitive environment, targeting both ends of his segment, more of less efficiently. In other Verizon news, the company is still spreading its improved network across the nation. The beginning of the week also brought its first branded iPad commercials, gearing up the public for some competitive marketing around Apple’s tablet.
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