Verizon Announces A New Prepaid Unlimited Plan

In an effort to keep up with the competition, Verizon had a very big announcement this week. The wireless carrier has unveiled a new prepaid unlimited plan that could have people with bad credit scrambling to get it.

The new plan gives customers unlimited talk, text, and data for $80 per month without requiring a contract or credit check. The plan also offers texting to over 200 international markets and unlimited calls to both Mexico and Canada.

So what’s the catch? This sounds too good to be true.

The new prepaid unlimited plan will limit video streaming to 480p, and there is no mobile hot spot or tethering.

Additionally, customers who have the plan will be subjected to deprioritization of their data by default if the network is congested.

So in other words, the carrier’s contracted unlimited plan is a lot better. It also costs $80 per month but includes HD video streaming, 10GB of LTE speed tethering, and deprioritizes data after 22GB of usage.

Verizon also has other prepaid plans for 2GB for $40, 5GB for $50, and 10GB for $70.

Verizon recently reported earnings and missed expectations. The company reported EPS of 95 cents while the consensus estimate called for 96 cents. Revenue came in at $29.814 billion compared to the $30.487 billion that analysts had expected according to Thomson Reuters.

Disclaimer: We have no position in Verizon Communications Inc. (NYSE: VZ) and have not been compensated for this article.