Commentary
The Cat And Mouse Game Between AT&T And Verizon Wireless Continues
First thing this morning, Verizon Wireless announced a handful of unlimited calling plans. Just hours later, AT&T responded with a similar set of plans, centering around the apparent sweet spot of $100 per month. Is all-you-can-eat the next battleground, and can anyone win it?First thing this morning, Verizon Wireless announced a handful of unlimited calling plans. Just hours later, AT&T responded with a similar set of plans, centering around the apparent sweet spot of $100 per month. Is all-you-can-eat the next battleground, and can anyone win it?First off, I don't think unlimited minutes for $100 per month is all that great a deal. I already get 1,000 "anytime" minutes that I don't use each month, and that's combining my business and personal line. I already get unlimited calling from 9 p.m. to 6 a.m. and all day Saturday and Sunday for $40 per month. What is that extra $60 getting me? A whole lotta nothing.
C'mon. Raise your hands. How many of you out there actually go over your voice minutes each month?
More Mobility Insights
White Papers
- The BlackBerry PlayBook tablet's Good Bones - by BlackBerry
- New Visual and Wizard-Driven Paradigms for Exploring Data and Developing Analytic Workflows
Reports
- Mobility’s Next Challenge: 8 Steps to a Secure Environment
- Time to Move: How to Ensure 'Mobility' Translates to 'Agility'
Webcasts
- Maximize ROI with Database Consolidation onto Private Clouds
- The ABC's of Cloud Computing in the Midmarket
Of course, there are plenty of people who practically live on their phones during the 9 to 5 time period (businessmen, teenagers), and unlimited calling makes perfect sense for that crew. Even so, most carriers offer 1,350 to 1,400 anytime minutes for $80 per month, and 2,000 for $100 (that's 90 minutes per day, for 22 working days of the month). For the common commoner, is unlimited necessary? I dunno.
Well, AT&T and Verizon are both offering it. What stinks is that messaging isn't bundled into these unlimited plans. Sprint has been trialling true unlimited plans for $120 per month. Sprint's includes unlimited messaging, e-mail, Internet, and more (but is limited to just a handful of markets). With AT&T and Verizon, you have to pay to add those features on. In the end, the dollar amounts are similar.
When it comes to messaging, almost all the carriers want you to bundle them. Shelling out $20 per month gets you unlimited SMS and MMS with most carriers. That's what I pay for. If you don't bundle, you'll be dinged 20 cents for each message.
So all-you-can eat is becoming the standard (unless you are a cable company like Time Warner, where apparently all-you-can-eat is out of vogue and charging by the megabyte is better).
What are the margins on these plans? What sort of usage do the carriers expect to see? What if people start talking for 5,000 minutes per month during peak periods?
Margins or not, one thing is for certain. The competition between AT&T and Verizon will continue to rage on. And in the end, consumers are likely to be the winners.
Update:
After I published this piece, T-Mobile sent me an e-mail saying that IT, TOO, will offer unlimited calling plans for $99 per month. T-Mobile's, however, also will include unlimited messaging in that plan.
Related Reading
| To upload an avatar photo, first complete your Disqus profile. | View the list of supported HTML tags you can use to style comments. | Please read our commenting policy. | |
|
|
T-Shirt Giveaway: Each week we're selecting one great comment from our readers. The author of the comment will receive an InformaitonWeek Community t-shirt. So get posting! |
Subscribe to RSSResource Links
This Week's Issue
Technology Whitepapers
- Mobile BI: Actionable Intelligence for the Agile Enterprise
- Creating the Enterprise-Class Tablet Environment - by Yankee Group
- The BlackBerry PlayBook tablet's Good Bones - by BlackBerry
- Red Alert: Why Tablet Security Matters - by BlackBerry
- New Visual and Wizard-Driven Paradigms for Exploring Data and Developing Analytic Workflows
Featured Resource
This white paper focuses on the critical need to manage outbound content sent via various avenues including email, Instant Messages, text messages, tweets, and Facebook posts. Read More












