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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 Xaussie on 4/28/2010 8:04:25 PM , Rating: 2
I found AT&T were the cheapest. $100 prepaid which lasts one year before expiring, so we end up paying about $8 a month per phone compared to $70 a month with the contract with two phones. That's a saving of $54 a month for us, or over 70%.

Switching was easy too, kept the same phones and the same SIM modules and just called them to switch it over. We had to pay about $200 in cancellation fees on the two year contract but with about 10 months left on the contract it didn't make sense to let it play out.

Of course we don't use the phones for chatting or surfing the web, just to the point information calls. My Blackberry gets Wi-Fi just about everywhere too so I don't need a data plan (don't forget to ask them to switch off data access).


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