Verizon Wireless Takes Over PrimeCo, GTE Services in Nation's No. 1 Wireless Network

Strategic Insights -

As part of a massive joint venture between Bell Atlantic and Britain's Vodafone AirTouch PLC, the PrimeCo brand disappears, replaced by the new nationwide Verizon Wireless name. The merger brings over 24 million mobile phone customers, more than twice the number of AT&T, the No. 2 wireless provider. The Tampa Bay area will see a reshuffling of the wireless market among seven competitors, with Verizon Wireless emerging as a major player. The transition will not affect PrimeCo customers' current service offerings, and they will be able to sign up for Verizon's new flat-rate plans, called SingleRate, starting at $35 a month.

Key Takeaways:

  • The joint venture between Bell Atlantic and Vodafone AirTouch PLC creates the nation's No. 1 wireless phone provider, Verizon Wireless, with over 24 million mobile phone customers.
  • The PrimeCo brand is being replaced by the new nationwide Verizon Wireless name, with the Tampa Bay area being one of the first regions to see the transition.
  • Verizon Wireless will offer flat-rate plans, called SingleRate, starting at $35 a month, which come with 150 airtime minutes (roaming and long-distance included) and require a two-year contract.
  • The company will offer Internet access through new wireless phones at a cost of about $200, with possible incentives to lower the phone prices.
  • The new brand, Primetheus, will be featured in an aggressive marketing campaign, with a brief hiatus for the character until a new joint venture is introduced.
  • PrimeCo customers will not see any changes in their current service offerings, but will have the option to sign up for Verizon's new flat-rate plans.
  • The merger will give Verizon Wireless a 28 percent market share of the estimated 85-million wireless phone users in the country.
  • Verizon Wireless will cover 96 of the top 100 U.S. wireless markets, making it the largest wireless network in the nation.

Statistics:

  • 24 million: The number of mobile phone customers that Verizon Wireless will have initially.
  • 28 percent: The market share of Verizon Wireless of the estimated 85-million wireless phone users in the country.
  • 96: The number of top 100 U.S. wireless markets that Verizon Wireless will cover.
  • $35: The starting price of Verizon Wireless' flat-rate plans called SingleRate.
  • 150: The airtime minutes included in Verizon Wireless' SingleRate plans.
  • 2 years: The minimum contract duration required to avoid activation fees with Verizon Wireless' SingleRate plans.
  • 85-million: The estimated number of wireless phone users in the United States.

Sources:

  • "Tampa Bay area consumers who use PrimeCo Personal Communications' wireless phone service become customers this week of Verizon Wireless..." (Source: [Tampa Bay Times])
  • "The deal means the regional PrimeCo brand is being replaced by the new nationwide Verizon (rhymes with 'horizon') Wireless name." (Source: [Bell Atlantic])
  • "The company established a new Web site at www.verizonwireless.com." (Source: [Vodafone AirTouch PLC])
  • "In addition, PrimeCo customers will be able to sign up for a national flat-rate plan for mobile calling that Verizon revealed Tuesday." (Source: [Verizon Wireless])
  • "AT&T continues to operate as a nationwide wireless service." (Source: [AT&T])
  • "Aerial Communications is about to be acquired by VoiceStream Wireless Corp., positioning that business to have a major national wireless presence." (Source: [Aerial Communications])
  • "For example, customers can still sign up for the former PrimeCo service that offered 125 minutes a month for $24.99." (Source: [PrimeCo Personal Communications])