Verizon Wireless (finally) adds LTE access to prepaid service

Verizon Wireless has finally thrown its prepaid customers a bone, announcing that it would begin offering access to its LTE network for those subscribers not willing to sign a contract.
The carrier said that beginning July 17, customers can use LTE-equipped smartphones on Verizon Wireless’ AllSet prepaid plans. Customers can purchase a new device from Verizon Wireless to use on the service or bring their own compatible device. New devices include the Motorola Moto X; Samsung Galaxy S4 and S5; HTC One; and the LG Lucid 3 and G2. No mention from the carrier on using Apple’s iPhone models with the service, though it’s expected that customers will be able to bring those models to the offering.
Verizon Wireless earlier this year updated its AllSet plans as well as offered up its Bridge Data feature that allowed customers to rollover purchased data buckets. That update, however, still limited prepaid customers to the carrier’s CDMA-based 3G network.
Verizon Wireless was the lone holdout of nationwide operators to not offer prepaid customers access to its LTE network. That limitation may have explained the carrier’s underwhelming prepaid performance, with the carrier adding just 10,000 direct prepaid customers during the first quarter of this year. By comparison, T-Mobile US added 465,000 prepaid customers during the first quarter. At the end of the first quarter Verizon Wireless counted just six million direct, prepaid customers on its network, or less than 6% of its total direct customer base.
While Verizon Wireless’ prepaid customers remain a small percentage of the carrier’s overall subscriber base, migrating those customers from its legacy CDMA operations to its more spectrally efficient LTE network will allow the carrier to begin shutting down spectrum resources supporting CDMA and focus them on LTE. Verizon Wireless’ CDMA network currently relies on the carrier’s 850 MHz and 1.9 GHz spectrum, while its LTE network is currently running across its 700 MHz and 1.7/2.1 GHz spectrum. Verizon CEO Lowell McAdam earlier this year noted that the carrier would begin looking at re-farming spectrum beginning in 2015.
Verizon Communications announced this week that its wireless division was set to post 1.4 million net customer additions for the recently completed second quarter, though it did not break out that growth between postpaid and prepaid.
The prepaid space is expected to see more pressure following AT&T’s recent re-launch of the Cricket brand that will now have access to the carrier’s nationwide LTE network. The Cricket brand under Leap Wireless had limited LTE access to just 21 million potential customers.
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