Verizon Communications (VZ) Restructures Unlimited Data Plans

U.S. telecom behemoth, Verizon Communications Inc. (NYSE:VZ) , has restructured and modernized its unlimited wireless data plans, so as to reach out to customers’ more diversified needs.

Beginning from today, Verizon Unlimited is evolving into Go Unlimited, Beyond Unlimited and Business Unlimited. For prepaid lovers, there’s also a Prepaid Unlimited plan for $80 per month, with unlimited data, talk and text, DVD-quality streaming and free calling to Mexico and Canada. Without line limitations in Business Unlimited, Verizon Communications aims to target business entities.

The company’s Go Unlimited Plan ($75 a month for one line or $40 a line for four lines) will display DVD-quality video at 480p on smartphones (Standard definition (SD)) and 720p on tablets (HD). The Beyond Unlimited plan ($85 a month for one line or $50 a line for four lines) offers HD-quality streaming at 720p on smartphones and 1080p on tablets. Also, Verizon will slow a phone’s regular Internet connection by an undisclosed amount at times of network congestion, in the cheaper plans. Data speed will be slowed in pricier plans only when a customer exceeds 22GB (gigabytes) of data in a month.

Moving forward, HD video on all legacy plans will also match Beyond Unlimited’s HD quality. The company is striving to ensure that all customers will have a great experience on their network. There will be no significant difference in quality on a smartphone or tablet when video is shown at higher resolutions (than 720p on phones and 1080p on tablets).

Customers who had signed up earlier this year for Verizon Communication’s unlimited plans will automatically get 5 GB additional mobile hotspot data, with no additional charges.

Video Throttling Issue

While remodeling its unlimited data plans, Verizon Communications seems to have compromised with the quality of streaming video. We believe that the company’s decision to throttle the quality of streaming video is an attempt to check how consumer’s preference over network and video streaming varies, with the prices charged. Charging customers who want high-resolution video can help Verizon Communications make more money off the unlimited plans.

Again, the addition of a cheaper plan also indicates the company’s attempt to strengthen its base in the competitive and saturated wireless space, by luring more subscribers from its rival carriers.

Plan Comparisons

There is no doubt over the fact that Verizon Communications’ unlimited data plans have always heated up the wireless industry. With the latest renovations in the plan structure, Verizon’s cheapest plan still looks more expensive than those offered by other top wireless carriers in the United States.

Sprint Corp.’s (NYSE:S) Unlimited plan costs from $60 to $160 (Though the carrier is running a promotion of $100 for up to five lines for the first year). T-Mobile US Inc.'s (NYSE:T) T-Mobile One Plan is priced at $70 plan with DVD-level video streaming. AT&T Inc.'s (NYSE:T) economic version is $60, but it caps data speeds at a slow 3 megabits per second.

Winding Up

We appreciate such a move on Verizon Communication’s part and believe that it will add to the company’s long-term growth prospects. Moreover, the company has always attempted to diversify its business model in fields like communications, technology, wireless industry, Internet of Things (IoT) and the media video and digital platform.

Moreover, it has witnessed the addition of 614,000 postpaid customers and 19,000 prepaid customers in the last reported second-quarter 2017, compared with a loss of 307,000 postpaid and 17,000 prepaid customers in the first quarter of 2017. We believe that this huge user addition came on the back of the company’s previously launched unlimited data plans (in Feb 2017).

Over the past three months, shares of Verizon Communications have inched up 6.31%, outperforming the 0.41% loss of the industry it belongs to.

Verizon currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

4 Surprising Tech Stocks to Keep an Eye on

Tech stocks have been a major force behind the market’s record highs, but picking the best ones to buy can be tough. There’s a simple way to invest in the success of the entire sector. Zacks has just released a Special Report revealing one thing tech companies literally cannot function without. More importantly, it reveals 4 top stocks set to skyrocket on increasing demand for these devices. I encourage you to get the report now – before the next wave of innovations really take off.

See Stocks Now>>