Cellphone users move to no-contract carriers

Verizon Communications Inc. and AT&T; Inc., the largest U.S. phone companies, are losing some cellular customers to carriers that don’t require contracts, as the recession forces consumers to seek cheaper calling options.

More than half of MetroPCS Communications Inc.’s new users, for instance, came from bigger nationwide phone companies in the fourth quarter, Chief Financial Officer Braxton Carter said. The company had its best quarter to date as more consumers avoided renewing their contracts, he said.

Verizon and AT&T; spokesmen declined to comment.

By offering unlimited voice and data service at less than half of what many monthly agreements cost, MetroPCS and Leap Wireless International Inc. have typically picked up cellphone users who couldn’t afford or qualify for contracts at their larger rivals. That may put pressure on Verizon and AT&T; to revamp their own contract-free calling plans to lure back subscribers.

“The national carriers are not going to let Leap and Metro get too successful,” said Sergey Dluzhevskiy, an analyst at Gabelli & Co. “You can be profitable with prepaid.”

Verizon is scheduled to report fourth-quarter results today. AT&T; will release earnings Wednesday.