The Future of US Prepaid After ACP Wind-down & Potential 60-day Unlock Mandate
Major prepaid brands are facing competition from MVNOs, cable and postpaid migration.
ACP funding has ended with over 23 million users looking for connectivity solutions.
If implemented, the FCC 60-day unlock policy will have major implications on prepaid dynamics, increasing competition between carriers and OEMs.
The US prepaid market has been undergoing drastic changes in 2024 as traditional prepaid brands face stronger competition from cable players and new MVNOs entering the market. Verizon and Dish’s prepaid brands have been continuously losing subscribers over the last several quarters and are looking to right their ships.
Following the closure of the ACP funding in June, over 23 million ACP subscribers are looking for new providers and subsidies to help cover their basic connectivity needs. ACP subscribers are now faced with options of retaining their current providers. We are already seeing Lifeline subscriber counts increase again in both overall subscriber numbers as well as applications to the program.
Additionally, the Federal Communications Commission's (FCC) proposal to have a uniform 60-day phone unlock policy could have drastic implications for the prepaid market if passed. A 60-day unlock policy could dampen prepaid promotional offerings as consumers could churn much faster and use these free or discounted devices on another provider.
The prepaid market continues to be an evolving space and the offers and services of today need to change for the consumers of tomorrow.
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