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| 178 | Dish eyes changes in ‘backwards’ prepaid business | ----------- | |
| FierceWireless: Wireless | 2020-08-08 07:30 | ????0? | |
| In prepaid today, a U.S. customer with no credit can get a free phone or nearly free phone. However, credit-worthy postpaid customers are required to finance their phones. That’s reminiscent of some of the crazy things he saw in other businesses like video or OTT where the idea was to sell below cost and make it up in volume. Boost’s new plans include $10 for 1 GB of high-speed data; $15 for 2 GB of high-speed data; $25 for 5 GB of high-speed data; and $35 for 10 GB of high-speed data. It also offers the Shrink-It! Plan that starts at $45 a month for 15 GB of data and unlimited talk and text. The rate on Shrink-It reduces customers’ monthly rates by $5 after three on-time payments and an additional $5 after six total on-time payments.Boost customers for years have been told to expect unlimited plans and this new emphasis on limited plans appears to be a direct result of its MVNO agreement with T-Mobile, according to Jeff Moore, principal of Wave7 Research. The MVNO deal, which has been characterized as a good deal for Dish, likely requires paying T-Mobile by the gigabyte of usage, so Dish has an incentive to limit data.The older demographic is not Boost’s traditional focus, but the $20 price point seems to be a battleground for some prepaid carriers, Moore observed. It provides a limited amount of data, and older customers often don’t see themselves as needing to use a lot of data. “If they don’t market to older Americans, then I think they’re missing an opportunity,” he said.There’s a segment of the U.S. prepaid market where phones are subsidized and another segment where they are not. Moore distinguishes these as urban prepaid competition where phones are subsidized and national retail prepaid, which is where TracFone plays, and phones are not subsidized. He also said that now that it`s under Dish, Boost is getting more rational in how it competes. -- ???????? | |||
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