Via its new AllSet prepaid plans, Verizon (VZ) is offering unlimited voice/text and 500MB of data to prepaid smartphone users for $45/month. Users can obtain an extra 500MB for $5, 1GB for $10, and 2GB for $20. Feature phone users only pay $35/month, but their voice minutes are capped at $500.
Previously, Verizon offered unlimited voice/text and 2GB of data to smartphone users for $60/month, with an extra 2GB available for $10. Thus the carrier's new plans amount to a price cut for light data users, but not for heavier ones.
Verizon is looking to better compete against T-Mobile USA (TMUS), which added 112K branded prepaid subs in Q4 and is expanding the reach of its MetroPCS brand. AT&T, on the verge of acquiring Leap Wireless and its Cricket prepaid brand, has also been fighting over a prepaid market that's responsible for much of the U.S. mobile industry's remaining growth.