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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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By wifiwolf on 4/28/2010 12:52:44 PM , Rating: 2
I just wonder what kind of management problems US is facing.
Here prepaid is much more used than contracts.
I've got a prepaid plan in which I'm only forced to pay 10€ a month and have:
Free calls (GSM), video calls (3G), and text to everyone that has the same plan as I do in the whole carrier.
Free mobile live messenger.
And 0.20€/min to other destinations.

Doing maths - 50 additional minutes a month for every other people I should need to talk to.
Actually I never needed that much since I almost always only need to talk to my closest ones and they all have the same plan as I do - so we talk as much as we want and for 0€. I'm stockpiling credit should sometime in the future I need it ;)


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