AT&T plans to offer a $25-a-month prepaid option, as the company looks to stay competitive in a growing slice of the mobile market.
The Dallas, Texas-based carrier’s plan for its GoPhone service will go live on September 18 and gives customers 250 minutes of nationwide voice minutes and unlimited text messaging. The new plan joins AT&T’s $50 a month option, which gives customers unlimited talk and text.
AT&T’s new plan comes hot on the heels of Verizon’s new $50 prepaid plan. Verizon’s prepaid option comes with unlimited data, text messaging and talk time, but is only available with feature phones, making the unlimited data feature obsolete by today’s standards.
AT&T’s GoPhone program offers both Android and Windows-powered smartphones, and users can add a data plan to the new $25 a month option and still pay less than they would at Verizon for prepaid service. This option may work best for users who use their phones for text messaging, data and apps, while those who spend more time talking on their devices may be better off with Verizon.
The two largest U.S. carriers are ramping up offerings in the prepaid market as the post-paid market begins to stall. Competitors like T-Mobile and Sprint already show success with pre-paid plans. In fact, Sprint’s Boost Mobile arm claims to have the best-prepaid option, offering unlimited data, talk and text on Android powered device.
Boost Mobile may offer the most impressive phones and pricing options, but AT&T’s new $25 plan will likely allow it to compete. The carrier is known for having a larger network than its competitors, which may be an advantage for prepaid customers looking for the best service at affordable prices.
AT&T’s move to attract more prepaid customers, just as Verizon unveils its plan, signals the increasingly competitive nature of this segment of the wireless market. Customers’ options for prices and selection will likely continue to improve with so many providers bidding for a piece of the prepaid market.