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Verizon is taking a temporary break from its plans to charge an additional $10 per month for its mobile 5G service, according to company statements, per Bloomberg. Previously, Verizon planned to waive the $10 charge for only the first three months.
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Here’s what it means: Verizon is seeking to better lure customers to its 5G service.
- The carrier is already providing incentives to make it easier to upgrade. It’s offering a $200 prepaid Mastercard card to customers who purchase a Galaxy S10 5G device and sign up for Verizon Unlimited. Additionally, those who pre-order the Galaxy S10 5G device will receive a free pair of Galaxy Buds and a Samsung Wireless Charging Battery Pack, and are eligible for up to $650 off.
- But offering free access to 5G plans is likely the most promising incentive. Less than one-third (31%) of consumers are willing to pay more for mobile 5G and, on average, they’d only be willing to pay an extra $4.40 a month, according to a survey by PWC. And given that Verizon already has the most expensive unlimited plans, waiving the $10 fee might help customers make the leap to 5G.
The bigger picture: Verizon’s move is necessary, especially after reports surfaced suggesting that the network’s early performance results weren’t living up to expectations.
Early reports of Verizon’s 5G network point to spotty coverage and inconsistent speeds, which can discourage consumers from making the jump to 5G. For consumers who are on the fence about upgrading to a 5G data plan and compatible device, these results could convince them to wait for network improvements before making the upgrade.
However, if consumers initially don’t have to pay any additional fees to upgrade to a 5G data plan, they may not be deterred by the early reports since 5G is still an improvement over what they’re using now.
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See Also:
- AT&T has launched its NB-IoT network
- Sprint’s 5G network will be reliable, but its speed could hold it back
- These are the top 8 China technology & electronics trends to watch
SEE ALSO: 5G AND THE IoT: How the next generation of wireless technology will transform the IoT
Source: Business Insider – rhollander@businessinsider.com (Rayna Hollander)