Cellular Price War Erupts Over Unlimited Plans

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News Posted: Tue, Feb 19 2008 7:13 PM
Verizon Wireless started a price war on Tuesday by announcing a $99.99 unlimited calling plan across the United States. The ink barely had time to dry on the press release before AT&T matched the offer.

Verizon Wireless introduced an unlimited calling plan for $99.99 a month on Tuesday, a move that was quickly matched by AT&T Mobility and T-Mobile USA and weighed down stock prices for all U.S. mobile carriers.

Verizon Wireless was apparently the first major carrier to make an "unlimited" plan available nationwide with no domestic roaming or long-distance fees. Its announcement was all but five hours old when AT&T announced its own unlimited plan.

Three hours later, T-Mobile followed suit, saying it would introduce a $99.99 plan on Thursday. Unlike the Verizon Wireless and AT&T plans, T-Mobile's includes unlimited text and picture messaging, which costs $14.99 per month when added to other T-Mobile plans.

How much upsell will they get from this?  Not much, according to investors, who sent all 3 stocks down in today's trading.

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Lev_Astov replied on Wed, Feb 20 2008 7:55 AM
Ha! Their stocks went down? That's because $100 is still absurd for what you get.

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mazuki replied on Wed, Feb 20 2008 2:23 PM
hmmmm, what could be coming soon.....perhaps 3.5g or 4g? i think that would be the only reason they would do this. but then again, i'm not a big investor.
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barone replied on Wed, Feb 20 2008 10:10 PM

it is always interesting to see how quickly big companies follow each other once something innovative comes out... T-Mobile and AT&T  psh

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werty316 replied on Wed, Feb 20 2008 10:16 PM

Well they got to be competative some way and its better to do something than to wait in the wings. 

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barone replied on Wed, Feb 20 2008 11:04 PM
Does anyone here plan on buying this unlimited calling? I have verizon wireless and love it
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My wife and I asked about this last night when we were in Verizon (fixing to be a proud new owner of a Voyager!!!!) and the lady said for two lines to have unlimited everything would be right over $200!!! That is insane IMO! 

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viperfour replied on Sun, Feb 24 2008 9:07 PM

You can add Sprint to the list as well.  They are considering a $60 Flat Rate unlimited plan.  Not that Sprint is a good carrier with their recent problems, but with added competition comes lower prices for us all from all the carriers trying to beat the other.  Just give it some time as this could force AT&T, T-Mobile and Verizon to lower their prices as well.  :)  I say "It's about time, Let the Price Wars begin!"

NEW YORK - No. 3 U.S. mobile service provider Sprint Nextel Corp is expected to offer flat-rate calling plans at up to a 40 percent discount to its rivals, hurtling the industry into a price war, analysts said on Wednesday.

The two largest U.S. mobile service providers, Verizon Wireless and AT&T Inc., on Tuesday unveiled $99.99-a-month plans for unlimited calls. T-Mobile USA went a step further by including text messaging in that price.

Sprint has yet to respond, but analysts say it could be considering an unlimited calling plan for as low as $60 a month in a bid to stem customer defections.

That could force AT&T and Verizon Wireless, a venture of Verizon Communications and Vodafone Group, to cut their prices or face losing customers.

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NGomez replied on Sat, Jun 26 2010 7:17 PM

The price wars are within companies and not just the industry itself - Sprint is an example. Sprint's unlimited, contract plan is $99+ taxes and fees while Boost Mobile (on the same network) has no contract and charges $50 a month. Huge price difference on the same network...and you're thinking there should be a reason, but I've found none except for a name and contract option. As a Sprint customer, you get really tired of seeing all the better deals pass you by because of a contract. Feeling the same? Take a moment and email the President of Sprint and let Mr. Hesse know how unfair this compeition is within one company - http://sites.google.com/site/sprintcustomersunite/

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