Verizon announced that it has doubled the data allotments on all Tracfone monthly unlimited talk and text plans. Verizon is using Tracfone to target Consumer Cellular's primary demographic, the 50+ age group. In a press release about the updates, Verizon specifically calls out Consumer Cellular: "This offer exceeds the data offered by their direct competitor, Consumer Cellular."
Tracfone's monthly unlimited plans have changed as follows:
- $15 plan now includes 1GB of data (up from 0GB)
- $20 plan now includes 4GB of data (up from 2GB)
- $25 plan now includes 6GB of data (up from 3GB)
- $30 plan now includes 10GB of data (up from 5GB)
- $40 plan now includes 20GB of data (up from 10GB)
The plans received other updates as well. They all now allow you to use your data for mobile hotspot. Tracfone is also now following the pioneering lead of Mint Mobile by offering these plans at a discount to those who purchase service 3 (10% savings), 6 (15% savings), or 12 months (20% savings) in advance. The plans allow unused data to carry over to your next billing cycle.
Tracfone's Ongoing Focus on the Older Demographic
Tracfone's focus on the older demographic isn't new. In early 2022, BestMVNO reported that Tracfone released a TV ad targeting this age group. The ad featured a cartoon caricature of a middle-aged person and asked viewers:
"Are you an influencer? Like watching action movies on a tiny, tiny screen? No? Then why do you need endless data?"
It pitched Tracfone's $40 plan.
Additionally, a Tracfone TV ad from last October featured an individual in the senior demographic.
Verizon's Multiple Prepaid Brands and Market Strategy
Verizon is currently home to many prepaid wireless brands that also include Visible, Total Wireless, Verizon Prepaid, Simple Mobile, Straight Talk, and Walmart Family Mobile. To maintain all these brands, Verizon must develop strategies to differentiate each one.
Having a brand to focus on the senior demographic may not be a bad idea. In October 2020, a firm out of Chicago, GTCR, purchased a majority stake in Consumer Cellular valuing the brand at around $2.3 billion. Tack on inflation and I'm sure that valuation would be even bigger today. At the time of its sale, the Consumer Cellular had 4 million subscribers.
Still, Verizon may have too many prepaid brands and could look to consolidate them. A recent article in We Talk Wireless highlights potential issues Verizon may face by having multiple brands run similar promos at the same time and price points.
Who does VZW think they’re kidding?
The pricing is terrible, no roaming, no Mexico.
Consumer Cellular, riding on AT&T, has better plans AND Mexico & Canada included. The plans are even better if you catch a sale.