Verizon has big hopes for myPlan, the new mobile plans that the company announced today and plans to launch on Thursday. As Verizon Consumer Group CEO Sowmyanarayan Sampath put it on an online investor conference today, the company expects the new plans to “fundamentally change how wireless is bought in this country.”
The new offerings, he said, create “an opportunity that’s fresh in the market, it’s unique, it’s massively differentiated and we think that will further help us get momentum back in our business.”
Verizon myPlan
Verizon myPlan is comprised of two basic elements: the network and the content. Subscribers first choose either the 5G Unlimited Welcome plan or Unlimited Plus with 5G Ultra Wideband plan. The latter comes with 30 GB of mobile hotspot data and as much as half off a watch, tablet, hotspot or Hum vehicle diagnostic and tracking system.
One-line subscribers will pay $80 for Unlimited Plus and $65 for Unlimited Welcome, according to a press release. Those with two lines will pay $70 and $55 per line, respectively for Unlimited Plus and Unlimited Welcome. Three lines cost $55 and $40 per line, four lines are $45 and $30 per line and five and more lines are $42 and $27 per line.
These prices exclude taxes and fees and include a $10 per line Auto Pay discount.
The next step is to add what the carrier refers to as “perks,” each of which costs $10 per month. Examples include a Disney bundle, an Apple Music bundle, a 100GB mobile hotspot, a Walmart+ membership, smartwatch data and safety, and 2 TB of cloud storage.
According to Sampath, customers will save an average of $5 to $6 a month per perk and Verizon will make an average 30% margin on the perks.
Suppliers are enabling Verizon to buy the offerings at a discount because they like the level of engagement and low churn that they see among Verizon customers, Sampath said.
Families on multi-line plans can mix and match their offers. One member can be on one plan and another can be on a different plan, he noted.
According to Sampath, Verizon mobile service revenue growth strategy has focused primarily on pricing over the last two quarters but he wants to see it rely 80% on pricing and 20% on quantity.
Sampath made his comments at the SVB MoffettNathanson TMT Conference. A replay is available at this link.
Carl Weinschenk contributed to this report
