High-speed data allotments and data-only plans will continue dominating prepaid wireless trends, says GlobalData

The COVID-19 pandemic and ongoing societal changes have altered the competitive landscape for US prepaid wireless carriers, making high-speed data allotments a key theme and this trend is expected to continue with year-end holiday shopping, says GlobalData, a leading data and analytics company.

Jamie Huff, Pricing Lead at GlobalData, comments: “Larger high-speed data allotments continue to be a theme as prepaid wireless competitors increasingly try to outdo one another with data-only prepaid plans. Looking ahead, we can expect to see prepaid carriers offer limited-time promotions, such as extra high-speed data to customers switching from rival providers and bringing their own devices. There also could be more adjustments made to pricing around mobile hotspot data plans, a service segment that has gained more focus due to COVID-19.”

GlobalData’s latest pricing and promotions report, ‘U.S. Prepaid Challengers Quarterly Wrap-Up – Q2 2021’, notes that both AT&T PREPAID and Cricket Wireless launched new data-only plans during April, and DISH Network’s Boost Mobile brand also introduced a new data-only plan in July. These moves reflect in part the impact of the pandemic, which has led to increases in remote working, online learning and demand for more streaming entertainment.

Many prepaid brands are supporting the US Government’s Emergency Broadband Benefit (EBB) program, which began May 12 and subsidizes the cost of broadband service for households that qualify based upon income. Depending on the service plan chosen, EBB subsidization can result in free internet access for a subscriber, a factor helping drive demand for prepaid data-only mobile plans and phone plans with substantial data allotments. Also, as mobile networks expand their 5G capabilities, they are better able to support mobile and fixed high-speed data demands.

Huff adds: “We don’t yet know how Verizon’s pending acquisition of Tracfone later this year will impact the overall prepaid wireless market. Nonetheless, as we enter the second half of 2021, GlobalData expects to see prepaid wireless carriers focus on family plan offerings, including targeting two- and four-line accounts with promotional pricing offers.

“Carriers will continue to focus on reducing churn with new loyalty offers, revamping and testing auto-pay rewards, offering bonus data on their high-tier plans, and updating value-added services, including streaming video. Provided the COVID-19 pandemic begins to level out more, we can expect a renewed focus on international features and plans as well as increased in-store only offers.”

More Media