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Unlimited Calling for $99.99 a Month! The Price War Ensues

Date: 02-21-2008



Verizon Wireless announced a flat-rate subscription plan charging $99.99 per month for unlimited calling, a move followed only hours later when AT&T and T-Mobile unveiled similar plans. Under the Verizon plan, customers will get unlimited messaging within the U.S. for an additional $20 per month, while their AT&T counterparts will get unlimited messaging for an additional $35. Verizon is also offering extra features like Internet browsing, email access, and various data downloading capacities for an additional $40. Sprint, on the other hand, was considering its options before joining the price war for flat-rate plans. AT&T is the largest wireless carrier in the U.S. with 70 million customers, followed by Verizon with about 65 million users. Sprint and T-Mobile follow next with 54 million and 28 million users, respectively. The quick responses by competitors to the Verizon Wireless move demonstrate the high stakes in the telecommunications industry, analysts said.
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