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Mobile Price Wars have Begun
Wednesday, February 20, 2008

Yesterday, Verizon launched a new unlimited calling plan with a starting price of $99 USD. Hours later, AT&T followed suit, and t-mobile joined along an hour after that, thus creating a price war.

However, what confuses me is that some analysts are saying that these plans could lead to a price war! Are they kidding me? What the hell are they talking about? There is no “could lead to a price war”! This is a ‘price war’, and the war started when Verizon invaded the island of Unlimited.

Then, AT&T announced it planned to send its troops onto the island of Unlimited on the 22nd ,and t-mobile said hey, you better watch out we are going to try to claim some of the island too; we are going in on the 21st, we will beat AT&T to the island of Unlimited.

This is a price war; there are no ifs, ands, or buts about it. Now analysts who are saying this could lead to one are probably being cautious because they know this ‘price war’ will drive stock prices down and scare investors. While that may be true, investors need to realize a lot of people will sign up for these unlimited plans. Many will ditch their land lines for one of these plans, and a great amount of people with these plans probably won’t even use 500 minutes a month.

I predict that AT&T and Verizon will both see a decline in landline subscribers. In fact, I see every form of phone company, be it traditional landline or VoIP, seeing a decline in subscribers in favor of these unlimited plans. I believe these unlimited plans will begin a new era in communication, one where the majority of the American population uses only a cell phone. It’s already started, but with these new Unlimited plans, it’s only going to speed the process up.

Now we just have to wait for Alltel and Sprint to jump onboard. I give them a week, and who knows one of them may surprise us with an even cheaper rate. (I hear about 60 - 80 bucks) Remember Sprint used to offer a 60 dollar unlimited plan they may bring it back.

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Posted by Michael on 02/20 at 02:46 PM
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