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Verizon Wireless $99.99 call plan quickly matched
The Associated Press
Published: February 20th, 2008 01:00 AM | Updated: February 20th, 2008 07:16 AM
Verizon Wireless introduced Tuesday an unlimited calling plan for $99.99 a month, 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.

“This is a highly competitive market, and we’re committed to moving fast to meet customer needs,” said Ralph de la Vega, chief executive of AT&T Mobility.

Three hours later, T-Mobile followed suit, saying it would introduce a $99.99 plan 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.

The Verizon Wireless plan is “likely to have repercussions for years to come,” Sanford C. Bernstein analyst Craig Moffett wrote in a research report, before the other two carriers introduced their competing plans.

Moffett likened the Verizon Wireless move to Sprint’s introduction of flat-rate long-distance prices for landline phones in the 1990s. That made it easier to compare plans and hastened a rapid decline in prices, Moffett said.

A relatively small number of cell phone power users are expected to benefit from the new plans, but investors saw little chance for the carriers to recoup lost revenue by up-selling customers who now pay less.

Copyright 2008 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.

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