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Analyst: Straight Talk plan getting traction in Atlanta
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TracFone Wireless' Straight Talk $45 per month prepaid plan is gaining traction in Atlanta, according to Pali Research analyst Walter Piecyk. The plan, which was quietly unveiled a few weeks ago, offers unlimited voice, text messaging and 30 MB of data and runs on Verizon Wireless' network.
Piecyk said Straight Talk is gaining steam in Atlanta and the plan likely is to be expanded to other markets. He also noted in a blog post that Wal-Mart employees seemed knowledgeable about the plan, and that they were pointing out to customers that the plan runs on Verizon's network. Several Wal-Mart employees said the majority of their prepaid wireless sales had already shifted to Straight Talk. Piecyk said that TracFone commercials promoting the plan appeared to be playing in heavy rotation on local television stations.
When details of the plan first emerged, Piper Jaffray analyst Chris Larsen said Leap Wireless and Boost Mobile, Sprint Nextel's prepaid unit, would be especially vulnerable to the increased competition. Shares of Leap and MetroPCS fell following the introduction of Straight Talk, though they have risen since.
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Comments
Posted by JimmyT | July 21, 2009 - 3:56pm
Well, I'm not surprised that this plan is selling like hotcakes. It is, after all, the best value plan available to cell users at the moment. The whole $45 unlimited-on-Verizon-network thing is a very good sales pitch because people get the quality network coverage for half the price.
And yes, I am using it too! ;-)
Posted by PrepaidWirelessGuy | July 22, 2009 - 2:44pm
This plan is genius, and no one should be surprised that it's popular. The big question will be whether actual usage levels are sustainable/profitable to allow it to persist. I hope so!
www.prepaid-wireless-guide.com
Posted by JunieB | July 24, 2009 - 4:53pm
As a college student, I don't have enough money to pay the pricy cell phone bill that I have been paying for the past few months. My friend told me at the beginning of the month of a company called TracFone. They are a prepaid cell phone company -- which means, I only pay for the minutes that I need. The best part is that you don't need to spend a lot of money on contract phones. Tracfone recently came up with a plan called "Straight Talk". I had NO IDEA what it was until I did some research. Here's what it is: you pay 30 dollars a month and it includes 1000 anytime minutes (nation wide), 1000 text messages, 30 MB of data and no overage charges! You can get them at Wal-Mart stores for very cheap. It's great for college students, elderly, children, and people who do not use their phones too frequently.
Posted by Fred | July 26, 2009 - 4:44pm
Straight Talk is great I use the service. Every time I go to talk on the phone i am more and more impressed by the company. Because of Tracfone I am able to afford alot of amenities that were otherwise to expensive. My life has greatly improved using Tracfone.
Posted by GeorgiaBull | July 31, 2009 - 12:46am
I use Straight Talk, and boy do I love it. I am saving alot of money. Who can complain about saving as much money as I am. The service provider Tracfone seems to have really good and clear coverage.
Posted by Anonymous | August 1, 2009 - 3:09pm
If only, if only, Straight Talk had a QWERTY keyboard phone option (prefer non-virtual). If they had that, I bet millions would jump over to it. Guess that is Verizons' way of keeping Straight Talk in check.
Posted by Gav | August 5, 2009 - 10:07am
I think that if a cell phone doesn't have great network coverage and service then it's not worth having a cheaper monthly rate, especially if your provider keeps dropping your calls. Some people may have the time to make three calls instead of one but I need a provider that's reliable. Fortunately, Straight Talk gives the best unlimited offer on the best network so I win all around.
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