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Verizon (VZ) Opts for Dealer's Network for Prepaid Service

Per recent news report by FierceWireless, U.S. telecom behemoth Verizon Communications Inc. VZ has started using the service of some exclusive dealer’s network to sell its prepaid wireless offerings. So far five stores have been launched, two in Las Vegas and Phoenix areas, and one in Socorro, TX. Notably, all five of these stores are run by a dealer known as My Peak Wireless.

The telecom biggies so far have largely ignored the domestic prepaid mobile service businesses. The national wireless carriers were mostly interested in the lucrative postpaid wireless market, while the prepaid market remained a secondary option. However, with the competition intensifying in the U.S. wireless prepaid market. In the last few years, the gap between prepaid and postpaid ARPU (average revenue per user) has narrowed significantly, forcing the wireless carriers to concentrate on the prepaid segment.

Verizon is attempting to boost prepaid market share through dealer’s network and has decided to launch several data plans in the price range of $50 - $70. In the third quarter of 2016, the company added a net 83,000 prepaid wireless...