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Verizon, AT&T and others still struggle to attract new subscribers

The economy is finally seeing recovery after quarters of disappointing figures, but AT&T and Verizon Wireless are still finding it difficult to woo new wireless subscribers.

Verizon signed 423,000 customers to postpaid contracts, while AT&T added 512,000 new subscribers.  AT&T’s new subscriber base saw a 43% decline compared to one year ago, while Verizon's 423,000 tally was a 55% drop compared to 2009.

Rather than latch on to costly two-year phone contracts, many wireless customers are now choosing prepaid wireless phones. The use of a prepaid plan allows owners to pay just for the minutes and data they use, which is especially helpful as many Americans continue to closely watch their budgets.

Unfortunately for wireless carriers, prepaid phone plans offer less profit for the host companies -- which is exactly why all four carriers offer phone specials, buy-one-get-one promotions, and other incentives to get customers hooked into long-term contracts.

AT&T is expected to again add more prepaid phone owners than postpaid customers in the next quarter -- a troubling trend for the carrier that has exclusive rights to the Apple iPhone.  Verizon continues to seek out the iPhone, though AT&T and Apple still reportedly have a strong working relationship. However, a possible Verizon-Apple partnership will be a significant victory for Verizon.

Verizon has used the Google Android mobile OS for several major smartphones, including the Motorola Droid and upcoming Droid Incredible, though the company understands the consumer market is rather fickle at the moment.

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It's a wake up call
By Floridian on 4/28/2010 9:37:22 AM , Rating: 2
So they finally woke up. After droves of customers like me fled to prepaid for better prices and, as in my case, just as good reception. I got Net10 prepaid and I've never regretted it for a minute. I'm saving hundreds a year.

RE: It's a wake up call
By Anoxanmore on 4/28/2010 9:51:04 AM , Rating: 2
That is because you don't make phone calls with your phone.

RE: It's a wake up call
By frobizzle on 4/28/2010 7:29:04 PM , Rating: 2
That is because you don't make phone calls with your phone.

Are you really that stupid or just blatantly arrogant?

Not everyone needs to blathering away on a cell phone for 2000 (or more) minutes a month. I average around 350 minutes a month and pay 10 cents a minute with Tracfone. And since they piggyback primarily on Verizon's network, I get great coverage almost everywhere.

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