Verizon nudges visible users toward pricier plans

Verizon is subtly pushing its budget-friendly Visible subscribers toward its more expensive postpaid offerings, a move that signals a potential shift in the carrier's strategy.

Visible's discount advantage diminishing?

The email, reportedly sent to BestPhonePlans' Stetson Doggett, offered a switch to Verizon's Unlimited Welcome plan for $55 per month, promising perks like a discounted iPhone and savings on subscriptions. This comes as Visible, priced starting at $25 per month, has long been a popular choice for those seeking a cheaper alternative to Verizon's standard plans.

But the apparent push isn't just about maximizing revenue. While Visible's low prices have allowed it to compete with Mobile Virtual Network Operators (MVNOs) and cable companies, those margins are thin. The cheapest Visible plan costs $25 with taxes and fees, while the most expensive tops out at $40. Verizon's postpaid plans, notably, don't include taxes in the advertised price, meaning customers ultimately pay more.

This isn’t simply about extracting more from existing users. Wireless growth has slowed, and Verizon may be prioritizing revenue per subscriber over the costly process of acquiring new customers. Postpaid subscribers tend to stay longer due to installment plans, while prepaid customers are more likely to jump ship to competitors.

The email suggests Visible’s current pricing model is becoming unsustainable. Verizon is prioritizing revenue maximization. For customers who don't need the extra features of postpaid plans, sticking with Visible might be the smarter move – unless top-tier service is a must-have.

Verizon's move highlights a broader trend: even the most disruptive pricing models eventually face pressure. The question isn't whether this is a temporary adjustment, but whether Visible can maintain its appeal in the face of Verizon’s calculated counter-offensive.