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Click here for more info I Agree Sign In Register 2G/3G/4G 5G & Beyond 6G AI/Automation Broadband Fixed Wireless Access FTTX Wi-Fi Cable Tech 10G DOCSIS CCAP Cable Business Services The Bauminator Climate Change Digital Divide Digital Infrastructure Any Haul/X-Haul DCI IoT Open RAN Optical/IP Routing/Switching OSS/BSS/CX Private Networks Regulatory/Politics Satellite SD-WAN Security Semiconductors/Network platforms Service Provider Cloud Services Test & Measurement The Core The Edge Video/Media Regions Asia Africa Europe India Middle East Industry Show News MWC Insider Guide Big 5G Event Events 5G Orchestration & Service Assurance Digital SymposiumCable Next-Gen Europe Digital SymposiumOpenRAN North America Events Archives Digital Event Archives Big 5G Event The Programmable Telco Digital Symposium APAC Digital Symposium Microsites White Papers Leaders In: Leaders In Edge Leaders In Pluggable Optics Leaders In Cloud Leaders In 5G Orchestration Heavy Reading Analysts Market Leader Programs 5G Transport - A 2023 Heavy Reading Survey 2023 Open RAN Operator Survey Open RAN Platforms and Architectures Operator Survey Cloud Native 5G Core Operator Survey Bridging the Digital Divide 5G Network Slicing Operator Survey Open, Automated & Programmable Transport The Journey to Cloud Native Coherent Optics at 400G, 800G, and Beyond Webinars Upcoming Webinars Archived Webinars 5G Webinars Live Learning Webinars Light Reading Video Telecom Innovators Showcase Light Reading Audio Light Reading Podcast Executive Spotlight Q&A Communities The 5G Exchange LR Asia Broadband World News Connecting Africa Telecoms.com Women In Comms News & Views Events Leading Lights Awards About Us Advertise With Us Newsletter Signup x Newsletter Signup Sign In Register Sign Up Free * 5G & Beyond * 6G * The Edge * Open RAN * The Cloud * Security * AI/Automation * Cable Tech * Optical/IP * Broadband * OSS/BSS/CX * Events * Digital Event Archives * 5G Orchestration & Service Assurance Digital Symposium * Cable Next-Gen Europe Digital Symposium * OpenRAN North America * Resources * Leading Lights * Light Reading Video * White Papers * Light Reading Podcasts * Upcoming Webinars * Webinar Archives * 5G Webinars * MWC Insider Guide * Leaders In Pluggable Optics * Leaders In Cloud * Leaders In 5G Orchestration * Live Learning Webinars * Executive Spotlight * Market Leaders * 5G Transport - A 2023 Heavy Reading Survey * 2023 Open RAN Operator Survey * Open RAN Platforms and Architectures Operator Survey * Cloud Native 5G Core Operator Survey * Bridging the Digital Divide * 5G Network Slicing Operator Survey * Open, Automated & Programmable Transport * The Journey to Cloud Native * Coherent Optics at 400G, 800G, and Beyond 5G and Beyond Sponsored By VERIZON'S NEW 5G MONETIZATION STRATEGY 'A LOSING BATTLE' AddThis Sharing Buttons Share to LinkedInLinkedInShare to FacebookFacebookShare to TwitterTwitterShare to WhatsAppWhatsAppShare to EmailEmailShare to MoreAddThis News Analysis Mike Dano, Editorial Director, 5G & Mobile Strategies 5/17/2023 Verizon this week slimmed down the number of its 5G pricing options. But the operator continues to position its speedy midband 5G network as a premium offering that customers need to pay extra for. That, according to one financial analyst firm, may not fly in an industry where Verizon's competitors aren't charging extra for fast 5G. "Trying to convince customers they have to pay extra for 5G UWB [ultra wideband] service is likely a losing battle as consumers are likely aware other providers will provide midband 5G for free," wrote the financial analysts at KeyBanc Capital Markets in a note to investors of Verizon's new pricing plans. But the executive driving Verizon's new 5G strategy argued that the operator is making the right decision by putting 5G at the heart of its new pricing gambit. "It's the network," said Verizon's new Consumer Group CEO, Sowmyanarayan Sampath, during a recent investor event, according to a Seeking Alpha transcript. He said Verizon's "ultra wideband" 5G network is the operator's "advanced network with all the bells and whistles." He added: "We have the best network on Earth." That, of course, is up for debate. Although Verizon continues to cite research showing the superiority of its 5G network, its rivals also make the same argument based on other competing research. Broadly, Verizon, T-Mobile and AT&T are all in the midst of upgrading their 5G networks with midband spectrum in an effort to offer faster connections. But T-Mobile has enjoyed a headstart on the effort, and partly as a result is gaining customers amid an improvement in customers' perception of its network. Going from six to two In its new announcement this week, Verizon said it would replace its previous pricing plans (dubbed "Mix & Match" and stretching across six options) with a new offering called "myPlan" that offers just two choices: Unlimited Welcome for $65 per month for one line of service, and Unlimited Plus for $80 per month for a single line of service. The main difference between the two choices is that Unlimited Welcome doesn't give customers access to Verizon's "ultra wideband" 5G network and Unlimited Plus does. Unlimited Plus also offers 30GB of hotspot data and won't cap or slow customers' speeds. Unlimited Welcome presumably will include caps and throttles, though Verizon officials didn't provide details. Update: After the plans launched, Stetson Doggett noted on Twitter that Unlimited Welcome will connect to Verizon's "ultra wideband" network but will throttle speeds to 25 Mbit/s. Verizon introduced two new pricing options that put 5G at the center of the customers' decision. Click here for a larger version of this image. (Source: Verizon) Verizon's "ultra wideband" 5G network runs over its midband and highband, millimeter wave (mmWave) spectrum holdings, while its standard 5G network only works on its slower, lowband network. (The operator is poised to add more midband spectrum into its network later this year thanks to ongoing C-band clearing efforts.) Verizon doesn't specify exactly how fast its various 5G options are, but noted that its "ultra wideband" 5G network is 10x faster than its 4G network. After customers choose which flavor of Verizon 5G they want, then they can add "perks" to their plan ranging from international data to additional hotspot data to the Disney+ streaming service. Each "perk" costs $10 per month. Verizon's Sampath said Verizon earns an average of 30% gross margin on the sale of such perks. The wider context Verizon's new pricing plans come at an important time for the company. First, the company is struggling to reverse almost a year of customer losses. Those losses stand in stark contrast to the millions of new customers that T-Mobile, AT&T, Charter Communications and Comcast have gained during the same period. In part to address the situation, Verizon CEO Hans Vestberg recently put Sampath in charge of Verizon's consumer business after a short stint leading the company's business division, among other executive shuffling. And the changes appear to continue to ripple through the company; Verizon's longtime marketing chief, Diego Scotti, recently left the company, according to a Wall Street Journal report. Sampath, for his part, appears to be making a big bet on Verizon's new plans. He argued they would help rekindle growth among Verizon's customer base. Moreover, like other executives in the space, he predicted that overall growth in the wireless industry will slow in the coming months. He said he expects the industry to eventually grow by 5-6 million customers each year, rather than the 10 million-customer-per-year pace it's been growing in recent years. That slowdown might be a good thing for Verizon, he said. "It's actually better for an incumbent like us to continue driving more pricing power in the market," Sampath argued. Some remain skeptical. "Verizon's new rate plans will raise prices for many consumers who opt to purchase add-on services," wrote the KeyBanc analysts. "Both of these are likely headwinds for gross additions. Verizon's basic pricing is still 2x+ the comparable offering of the Cable providers. Further, Verizon has been trying to convince investors of their ability to migrate consumers to higher tier rate plans, and while this could be ARPA [average revenue per account] accretive if multiple 'perks' are purchased, we don't believe consumers receive incremental value or allow Verizon to capture incremental value." Related posts: * Verizon's CEO tries another management shakeup * Verizon looking desperate amid latest pricing gambit * Verizon ties streaming to new 'Mix & Match' 5G plans — Mike Dano, Editorial Director, 5G & Mobile Strategies, Light Reading | @mikeddano Like what we have to say? Click here to sign up to our daily newsletter One of America's most loved telecoms get-togethers, The BIG 5G Event, will be returning to Austin in 2023 to host 1,500+ telecom, cloud and technology professionals — and we want you to be a part of it! For three days, you can meet and network with leaders from every part of the North American 5G ecosystem and hear from over 150 speakers on the hottest industry topics. To apply for your complimentary pass to the event, visit this link. 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