Phone fight: T-Mobile ups ante in unlimited calling plan battle
By Michal Lev-Ram
Just hours after Verizon Wireless announced Tuesday that it was launching a $100 unlimited calling plan, rival AT&T matched the offer with its own $100 plan Not to be outdone, T-Mobile hopped on the bandwagon late Tuesday, saying it too would launch $100 unlimited calling plan and kick in unlimited text messaging and other data services for free.
The announcements sent shares of both Verizon (VZ) and AT&T (T) plummeting about 6% in late trading. But shares of all three carriers, including T-Mobile’s parent company, Deutsche Telekom (DT), were up slightly after the bell.
In a written statement, T-Mobile said its new rate plan is an effort to “help our customers stick together with those who matter most, and to provide the utmost value to our customers.”
AT&T spokesperson Mark Siegel said his company wants “to be able to rapidly respond to our customers’ needs and to be able to rapidly respond in a very, very competitive marketplace.”
Verizon’s new plan launches today, while AT&T and T-Mobile’s will be available to customers late this week.
The three mobile operators are fierce competitors. While Verizon and AT&T are both are considered to be the number one U.S. carrier — depending on the definition, as Verizon leads in revenue while AT&T has more subscribers — T-Mobile has built a reputation as the most “consumer-friendly” of the major carriers and is especially popular among young customers.
The unlimited plans are a first among major U.S. wireless operators, as consumers typically pick rate plans based on how many minutes they think they’ll use per month and are stuck with paying steep fees (as much as 45 cents per minute) if they go over their allotted airtime.
But Verizon, AT&T and T-Mobile aren’t just competing with each other, they’re also attempting to take business from Internet phone calling providers like Comcast (CMCSA) and Vonage (VG). Those companies typically offer unlimited calls for as low as $25 per month.
While Voice over Internet Protocol, or VoIP, services tend to be inexpensive (some are even free), they are usually confined to home phones or personal computers. Verizon says it is counting on its service to appeal to the growing number of consumers who rely exclusively on their mobile phone to make calls. According to CTIA, a wireless trade association, 12.8% of U.S. households were “wireless-only” in 2007, up from 7.7% in 2006.
Verizon’s chief marketing officer Mike Lanman says he expects the new service to be attractive to 13 to 15% of wireless customers.
Currently, Verizon offers basic wireless calling plans that cost anywhere from $40 for 450 minutes to $200 for 6,000 minutes. The company won’t disclose how many of its customers have signed up for its higher-priced plans. AT&T charges similar rates for its basic, individual calling plans. T-Mobile tends to offer slightly cheaper plans, such as a $30 per month service that gives subscribers 300 minutes of airtime.
But $100 a month — payable to either of the three carriers — is a lot of money to shell out for monthly cell phone service, especially since it doesn’t include the price of a data plan. Only T-Mobile’s plan includes text and picture messaging, but even that rate doesn’t include other data services like Web browsing.
Of the four major U.S. carriers, Sprint (S) is the only who hasn’t yet jumped on the unlimited call plan bandwagon. Its shares were down more than 3% during regular trading on Tuesday.
VoIP is very inexpensive but the article says that it is confined to homes/ residences - not sure what the context is. There are business VoIPs and residential VoIPs. Now, They are trying to get Mobile VoIP for mobile workers.
There is more information about VoIP Services here:
.
The sprint plan is only available in certain areas….not nationwide.
back in the 90’s before at&t bought cingular at&t had an unlimited plan for the same price. this is nothing new.
In Europe I buy pay-as-you-go GSM chips from the Swiss, or Italian, or Greek, or Turkish telecoms (so that I do not pay roaming charges for in-country calls), and then fill the chips as needed. (Swiss Telecom lets me do it remotely from a Visa card.) No monthly plans, no minimums, etc. I detest paying for things that I do not use. Why can’t we do the same sort of thing in the USA? Or is it too sensible an idea?
boost mobile offers unlimited for $49 per month, Metro PCS offers same for $29. Verizon no has $99…unlimited.
it is all a rip off, because the service and call consistency goes down as the call volume on the lower tiers gets clogged…this ain’t your T-1 Tier -1 Bubba.
Sprint has had an unlimited calling plan for years at $200/line.
3 weeks ago, they added an unlimited everything plan for about $120/mo.
CNN is right up there with the rest of the inaccurate mainstream media companies where accuracy is no longer relevant. Boo!
Actually, Sprint has had an unlimited CALLING plan for years at $200/line. Their new plan adds unlimited EVERYTHING for about $120/mo.
Sprint was FIRST when they launched their unlimited plan about 3 weeks ago.
http://sprintunlimitedaccess.com/
Where’s your validation/accuracy of reporting?
Helio offers a 99 dollar unlimited plan which includes data. Helio is a MVNO which uses Sprint’s network.
“While Verizon and AT&T are both are considered to be the number one U.S. carrier — depending on the definition, as Verizon leads in revenue while AT&T has more subscribers …”
Huh?
Verizon invented this “#1 carrier in revenue” term, because after Cingular Wireless bought AT&T Wireless in 2004, they haven’t been able to take back the title of “#1 carrier in subscribers.” Since they couldn’t reach the top again (after 3 years) … they make up their own “award” to make themselves feel better. Just pathetic …
The NY Yankees have the most annual “revenue” of any team in the MLB, but they haven’t won a World Series this decade (let alone this century). Verizon would have you think that the NY Yankees are the best, since they make the most money. Sorry … it’s the team with the most “wins” (e.g. customers) in the playoffs that are the best in MLB.
One should look at what has happened to tariff plans in india and china. Europe and the US are headed there.
Of course this will be for ‘New Customers’ only since T Mobile doesn’t seem to give a s***t about existing customers. This is from a T Mobile customer since 1999 probably on the fourth or fifth upgraded phone which was still over $300 even on their ‘best upgrade’ plan where I had to sign a new contract for another 2 months.
These gimmicks are great but why not hire knowledgeable reps and have a uniform policy not one based on selective amnesnia and where you have to haggle like you are buying a car.
Unless your whole job is spent on the phone therre is not a reason anyones cell phone bill should be over 60 dollars and in fact most people probaly do not need or use all the features their phone has. it just hits a point in socoiety where you have to ask yourself what do i need or want. For this upcomming election I want healthcare for free taxed from the goverment i cant afford it because i need a 100 dollar cell phone bill.
Sounds like they are following in Helio’s footsteps. Helio just started a $100/month Unlimited plan that includes unlimited web/data/download access.
Who wants a $100 plan? If they’re compete against Vonage it’s a losing game, as I’m paying for broadband and VoIP is fas less than $100.
I want a $10 plan that allows me to pay by the minute after the first hour.
“But $100 a month — payable to either carrier — is a lot of money to shell out for monthly cell phone service, especially since it doesn’t include the price of a data plan.”
People shell out $40-$60 a month easy just for a landline plus unlimited long distance. And then add an expensive cellphone plan. And then pay all the double dipping taxes and fees that go on with having two plans.
A lot of people are going to happily bail on their landlines with a $100 fixed rate cell plan.
“A first among major carriers” is incorrect. SprintNextel has offered an unlimited plan for at least a couple of years now.
This is actually not the first unlimited plan offered in the U.S. When AT&T/Cingular was introducing there GSM network they offered an unlimited plan for as long as you had a contract 2 or 3 years I believe. It also was the same price $99.00 a month.
Contrary to what this article states, these two companies are NOT the first to offer an unlimited calling plan for cellular. A small company, Rural Cellular Corporation, Maine, NY, Vermont, NH, etc. has in the past offered an unlimited calling plan for $39 and $49. This was unlimited U.S. calling, 24/7. $100.00 seems very expensive in comparison. While VOIP is fixed location and not mobile wireless, I think there are still many people like myself that do just fine with Vonage and a prepaid cell phone from TracFone. Actually, I have UNLIMITED Vonage and TWO TracFones and my total cost per month is only $34.00/month!! These days with LifeLine plans such as TracFone has, you can buy a block of minutes, and NEVER loose your account or phone number providing that you pay a small montly fee that is currently under $6.00. Therefore, you do NOT need to be constantly adding minutes every 30, 60 or 90 days just to keep your prepaid phone active. This news release shows just how near impossible it is to get or ever expect the giants like Verizon or AT&T to ever get their prices in line with todays competitive market and living standards of its customers.
I have heard that there are consultants that can cut through all the clutter of cell bills and help save money. One of them is http://www.consiliare.com
please ammend your article after checking plans at VG AND ITUI.OB. YOU HAVE PRINTED PROPAGANDA !
This plans already exist in Puerto Rico companies like SunCom Wireless, Centennial, Claro, and AT&T have unlimited calling plans with LD for $49.99 per month
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$100 !!! Do i get a ** with that? that’s crazy !!! the articles’ wrong anyhow Sprint has had a $100 plan fro sometime now that include txt, video, picturemail, websurfing, and radio stations….. Seriously still to expenses I’ll stick to my family plan and Vonage…as for the individual that says he’ll dump his land liine for $100 cell…. LOCO !!!