See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
AT&T Inc. (T) - free report >>
Verizon Communications Inc. (VZ) - free report >>
We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
AT&T Inc. (T) - free report >>
Verizon Communications Inc. (VZ) - free report >>
Image: Bigstock
Verizon (VZ) Hikes Monthly Data Plan, Increases Data Limit
Leading U.S. telecom carrier, Verizon Communications Inc. (VZ - Free Report) has increased its monthly data plan by up to $10/month, depending upon the size of the plan. The increase in rates is, however, accompanied by higher data caps for each and every plan. Interestingly, the rate hike will actually lower the cost per GB for consumers. Notably, the company’s rivals, including Sprint Corp. (S - Free Report) , AT&T Inc. (T - Free Report) and T-Mobile US Inc. (TMUS - Free Report) , have all been lowering prices on data to entice customers in an already saturated wireless market.
Details of the Plans
Verizon was previously offering a starter pack comprising 1 GB of data for $30 per month, along with unlimited calls and text. After the rate hike, this plan will provide a 2 GB data limit for $35 per month. Similar updates were offered for Verizon’s other plans too. Additionally, the carrier will now allow carry-over of data to the next month. This is anticipated to be extremely popular in today’s data-driven world. The company is also introducing some plans that will allow Verizon customers to make unlimited calls and send unlimited texts to Mexico and Canada.
Our Take
With the increasing infallibility of Internet in our lives, telecom providers have shifted their focus to data revenues in addition to the usual charges for voice calls and text messages. In our opinion, although Verizon has increased the rates of its monthly plans, customers will be able to benefit from the updated ones as they will now pay less for more data.
Notably, Verizon has a robust 4G LTE footprint and has the largest wireless subscriber base in the U.S. We believe such plans will prove to be immensely beneficial for Verizon as they would not only boost the company’s revenues, but also keep the churn rate in check.
Verizon currently carries a Zacks Rank #4 (Sell).
Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report >>