Verizon May Sunset Net10
This week the Net10 Wireless homepage looks a bit different. The banner reads “Make the switch to Simple Mobile” and describes that it “offers even better service.” Both Net10 and Simple Mobile are, of course, Verizon-owned prepaid MVNOs since the company’s acquisition of Tracfone. This, along with limited advertising in recent years, leads us to believe Net10 may not be an option for prepaid shoppers for much longer.
The Circana Take:
- According to the Connected Intelligence Mobile Connectivity Survey, 12% of smartphone owners are aware of Net10. Simple Mobile, on the hand, enjoys high adoption rates thanks to a larger distribution network via authorized dealers. Redirecting prospective subscribers to Simple Mobile makes sense to take advantage of its distribution, while also keeping customers within the Verizon family of MVNOs.
- Promoting Simple Mobile as having better service, no contracts, no credit checks, and no hidden fees makes it appealing to cell phone owners looking to switch to an affordable and reliable service, as many are. Simple Mobile’s pricing on the landing page advertises $25/line, which is a competitive offer. The $25 plan allots customers 3GB of high-speed data, and unlimited talk and text. It is the lowest data option, and the pricing falls in between other MVNOs. For example, while Boost Mobile offers $25 for unlimited data, Metro’s plans cater more toward multi-line discounts. These points make Simple Mobile an attractive option for single-line users who do not need unlimited data, while still offering additional discounts for multiple lines.
Motorola’s Bose Bundle
Motorola’s direct-to-consumer website currently offers free Bose QuietComfort Earbuds II with the purchase of the new Edge+ (2023). The earbuds retail for $299, making this a generous gift with the $799 purchase of the high-tech smartphone. This bundle is available through Motorola’s site, but this is not the only current deal on the device. Amazon and Best Buy are simultaneously offering promotions to save $100 off the Edge+ (2023) price.
The Circana Take:
- While several smartphone brands also sell their own earbuds, Motorola does not have the same presence in the category. Partnering with Bose to provide this premium product as a gift with purchase acts as an additional incentive, while narrowing the options for customers who might not know which brand of earbuds to pair with their new phone. Brands who play in multiple categories like headphones and smart watches often bundle within their own merchandise at carriers or proprietary outlets, so seeing a cross-category and cross-brand partnership is noteworthy. This can also help Motorola and Bose capture sales of customers who may have purchased earbuds from competitor smartphone brands.
- This promotion is exclusive to Motorola’s website, which means that customers need to know to visit the site, or see it advertised, in order to take advantage. Additionally, the smartphone is sold unlocked, but Motorola makes it easy to find out which devices are compatible with which carriers on their site. Still, the customer must be comfortable purchasing the unlocked phone and activating it later. It will be interesting to see whether Motorola or other brands will have similar deals with carriers or retailers in the future, and whether this trend is likely to continue on direct-to-consumer sites.
- The next version of our Connected Intelligence Mobility survey will provide insight into purchasing patterns for headphones, which can advise bundling strategies. New questions will uncover whether headphones were purchased in the past 12 months, whether the brand is consistent with the user’s ecosystem of smartphones and other devices, and whether they are likely to purchase the item through their cell phone service provider.