Unlimted plans popping up everywhere


As I alluded to yesterday, the wireless companies did react to Verizon’s unlimited offerings with plans of their own. AT&T essentially matched the $99 voice plan but only for non smartphone users, which is ridiculous as most power users don’t use flip or candy bar phones. As expected, soon thereafter T-Mobile matched the $99 a month price with unlimited SMS and MMS added as well. T-Mobile has always had the best value plans and have had to because they dont offer much else, so it was a no brainer that they would not only match but outdo their wireless counterparts.

Verizon just saved customers millions of dollars and companies all across the U.S. just saw their bottom line decrease and thats a beautiful thing in these uneasy financial times. I can guarantee that not one of the other wireless companies wanted this to happen as this will cut into profits and possibly affect ARPU (Avg revenue per unit) which is a barometer that wall street pays very close attention to. Verizon must feel that their buzz has been killed due to the announcements today but maybe being out in front on this will have its advantages. CHURN (customer turnover) rates should be very interesting for Q1 2008, as these plans could cause a large number of defectors.

Lets hope these type of changes in the mobile world are only the beginning and we start to see features like the Blackberry service drop to a far more reasonable rate

T-Mobiles plans start on Thursday the 21st of February
AT&T’s bogus version launches on Friday the 22nd of February
Verizon pulled the trigger yesterday and should be applauded for helping all this happen.

SideNote: Where is Sprint in all this? If any wireless company needed a boost they do and this can only be bad news for an already struggling company.