Visible goes 5G
Verizon-backed MVNO Visible recently announced a major streamlining of its service offerings including support for 5G connectivity, modified Party Plans, international calling, and eSIM activations. The digital MVNO announced that customers with 5G-powered devices can connect to Verizon’s 5G network, though they will be capped at a maximum download speed of 200 Mbps. Visible also announced that customers are also now offered free calling to Canada, Mexico, the U.S. Virgin Islands, and Puerto Rico. Notably, the MVNO previously lacked any international coverage and simply relied on OTT messaging/calling apps such as Whatsapp. The MVNO also announced that it will now begin provisioning customers using iPhone XS or newer series for eSIM activations. Finally, Visible’s popular Party Plan, which encourages customers to form account groups of up to four lines to enjoy discounts, is now uncapped. Customers previously pooled to bring their $40/month rate down to $25/month when reached the four-line limit. The new plan now allows more users to join the “Party” and enjoy the discount benefit.
The NPD Take:
- U.S. mobile subscriber churn has dropped to record low levels due to the pandemic, giving carriers extra breathing room in their quest to retain their customers. This is not an ideal landscape for emerging service brands like Visible that needs an active churn environment to boost their base. The MVNO’s decision to remove the cap on its Party Plan may have an initial adverse impact on ARPU, but it should certainly help the brand grow its base before Verizon brings in additional internal competition with the Tracfone acquisition later in the year.
- Visible is a digital brand at heart, thus the announecement on eSIM provisions is extremely important in helping the MVNO reach out to the digitally-oriented customer segment it targets. According to the NPD Connected Intelligence Mobility survey, close to 30% of U.S. smartphone owners are aware of the eSIM feature and this awareness goes beyond the 40% levels among millennials, Visible’s target user segment.
Motorola’s low-cost 5G phone hit Metro by T-Mobile shelves
T-Mobile announced the availability of Motorola’s new “one 5G ace” phone through its main prepaid arm, Metro by T-Mobile. The entry-level phone, as its name suggests, boasts 5G support (runs on the Qualcomm Snapdragon 750G 5G chipset) as well as a 6.7-inch HD+ display and a 48-megapixel camera. The one 5G ace was previously released by Motorola in January with an official MSRP of $399 (which is also Motorola’s price tag on the unlocked version), however, Metro by T-Mobile has a $279 price tag on the phone. Existing customers who add a new line can get the new one 5G ace for $89, while newcomers who port-in a number from another carrier can get the phone for only $19. The phone will later on become available for T-Mobile’s postpaid customers as well.
The NPD Take:
- The sub-$300 5G phone price points we have been witnessing for the past couple of months is just the beginning of the fierce 5G price wars we’ve been speculating since the beginning of 2020. OEMs have been able to hit these levels on Qualcomm’s mid-tier 5G chipset solutions, thus we should expect these 5G MSRP levels to gradually decline in the coming months when new models running on the low-end Snapdragon 400 series begin surfacing.
- Metro’s $279 price tag on the Motorola one 5G ace makes it the lowest MSRP-phone available in the U.S.; however, it should be noted that Metro has been offering OnePlus’ new Nord N10 5G (MSRP $299) for free with a number port-in.