Verizon pushes customers to postpaid plans, ditching affordable visible option

Verizon is pressuring customers to switch from its budget-friendly Visible service to more expensive postpaid plans, a move that could squeeze profit margins at the cheaper brand.

Verizon's postpaid push

In a recent email, Verizon urged one customer to switch from Visible to its Unlimited Welcome plan for $55 per month, touting benefits like device discounts and subscription savings.

However, Unlimited Welcome offers the slowest 5G speeds and lacks hotspot data, a feature that's included in Visible's most expensive plan for $40 per month, with taxes and fees included.

Verizon's postpaid plans, on the other hand, don't come with tax-inclusive pricing, meaning customers will end up paying more than the advertised price.

This move could be a sign that Visible is becoming unsustainable, with Verizon seeking to maximize revenue per user. The carrier may also be trying to milk more from existing customers rather than incurring the higher cost of acquiring new ones.

Postpaid subscribers tend to stick around longer due to installment plans, whereas prepaid customers aren't bound by long-term contracts and can easily defect to rivals.

For customers who don't require the bells and whistles of postpaid plans, sticking with Visible might be a better idea, especially if they don't want their monthly expenses to balloon. But for those who need top-notch service, Verizon's offer is worth considering.