Verizon Offers $50 Unlimited Prepaid Plan

The Basking Ridge, N.J.-based carrier's "unleashed" plan gives customers unlimited calling and texting for just $50 a month, which is significantly lower than its current $95 prepaid plan. But the plan still doesn't compare to offerings from regional rivals MetroPCS and Cricket, which charge $40.

The new plan may keep AT&T at bay, for now. Earlier this month, A&T introduced its first prepaid Android smartphone, the LG Thrive for $180.

Verizon and AT&T, which now sell essentially the same Apple products, will have to compete on the quality of their networks and the price of their service plans.

Once Verizon got the iPhone as well in February, AT&T cut the price of its iPhone 3G to $50 and started rolling out deals like the LG Thrive.

A cheap prepaid plan could bring Verizon the good press it needs after suffering a 4G network outage earlier this week.

AT&T, which threatens to displace Verizon as the top carrier, is proving to be a formidable foe, with its planned $39 billion merger with T-Mobile. While this prepaid option may not make much difference after the merger, it does heat up the battle for both sides until then.

So far Verizon's $50 plan is only available in Florida and Southern California, but the company plans to extend its offering nationwide soon.