cmacv
 
Reply Fri 15 Jan, 2010 08:25 am
NEW YORK (Dow Jones)--Verizon Wireless introduced lower wireless pricing plans Friday, a move that's likely to force rival AT&T Inc. (T) to follow and could pressure margins on the carriers' high-end business.

Verizon Wireless, owned by Verizon Communications Inc. (VZ) and Vodafone Group PLC (VOD), slashed pricing on some of its contract plans, dropping its nationwide unlimited voice plan to $69.99 a month from $99 and offering a nationwide unlimited voice-and-text plan for $89.99.

The company's nationwide unlimited family plans will be $119.99, and an unlimited family voice-and-text plan will be $149.99. Family plans' base pricing is for two lines.

Verizon also announced new plans in its prepaid segment--a white-hot area of growth in the wireless industry--offering non-contract options at $5 more a month than comparable contract plans. An unlimited voice plan will be $74.99 a month and unlimited voice and text will cost $94.99. The 450- and 900-minute prepaid plans also will be $5 more a month than their corresponding post-paid plans.

The new plans will be available Monday. The new pricing won't affect existing customer contracts, although customers may choose to switch to any of the new plans without penalty or contract extension.

Shares of Verizon fell 0.7% to $31 in premarket trading.

"We expect AT&T to follow quickly," Macquarie analyst Phil Cusick said before the announcement, predicting Verizon would lower prices. He noted that last year, when Verizon moved the plans to $99, AT&T followed suit a few hours later.

Officials from AT&T were unavailable for comment.

It's unlikely Sprint Nextel Corp. (S) or Deutsche Telekom AG's (DT) T-Mobile would respond because their prices are already $20 or more lower, the analyst added.

Cusick said cuts by Verizon Wireless are likely to have an impact on 5% to 10% of the company's higher-paying subscribers, but the loss in revenue could be offset by customers in lower-priced plans moving up, attracted by the better value.

When the $99 plans were announced last year, AT&T and Verizon said only 1% to 2% of subscribers paid more, Cusick noted. "The bigger concern is that [Verizon], fresh off a strong quarter, is choosing to attack AT&T for dominance in the slowing" market for monthly contract plans, he added.

Separately, in an interview last week with MarketWatch, Verizon Communications' Chief Technology Officer Dick Lynch said wireless companies will eventually have to change how they bill customers, charging them for how much "bandwidth" they use to prevent networks from getting clogged up. Lynch said current data plans, which allow unlimited Internet access for a flat monthly fee, encourage overuse of wireless networks, mainly by a small number of "bandwidth hogs," or individuals who send and receive lots of large files.

Yet, in that interview, Lynch said the company had no immediate plans to change how it bills customers.
  • Topic Stats
  • Top Replies
  • Link to this Topic
Type: Discussion • Score: 1 • Views: 1,719 • Replies: 13
No top replies

 
Droid Motorola
 
  1  
Reply Fri 15 Jan, 2010 11:12 am
@cmacv,
verizon lowering prices in the same sentence? i didnt know that was possible.

Now if only one day i could hear comcast and lowering prices in the same sentence.
The Chief
 
  1  
Reply Fri 15 Jan, 2010 11:51 am
@Droid Motorola,
Just in time for my new every two in April! Good thing too, since my family all wants Droids now and the data plans will eat me alive :p
0 Replies
 
saintlewi
 
  1  
Reply Fri 15 Jan, 2010 02:55 pm
@cmacv,
score! i wonder how they are going to stiff us by trying to change it..."sure, you can change your plan...but that will constitute canceling your contract, so you will be charged $350 to save $10 a month"...hmmm
0 Replies
 
darebrokenheart
 
  1  
Reply Fri 15 Jan, 2010 06:14 pm
@cmacv,
Good question saint. There has to be a catch some where. It may seem like the customers are getting a deal but we all know verizon is known to get more of your money another way.

Also my contract ends in september but i can upgrade this coming may...yay!! Droid here i come.
cmacv
 
  1  
Reply Sat 16 Jan, 2010 12:44 am
@darebrokenheart,
The new plans will be available Monday. The new pricing won't affect existing customer contracts, although customers may choose to switch to any of the new plans without penalty or contract extension.

Read more: http://www.nypost.com/p/news/business/verizon_lowers_price_plans_sHKM1cW1z70EJEjtdtW6HI#ixzz0cksj6QJs
0 Replies
 
Droid Motorola
 
  1  
Reply Sat 16 Jan, 2010 10:47 am
@cmacv,
Do watch out for the specifics. I remember back in the day we had really good text packages for a couple bucks but if we wanted nationwide minutes we had to upgrade losing our text packages.
saintlewi
 
  1  
Reply Sun 17 Jan, 2010 01:25 pm
@Droid Motorola,
woot...going in on tuesday...after getting 15% through my job, should save me about 30 bucks a month.

thanks for letting us know!
cmacv
 
  1  
Reply Mon 18 Jan, 2010 05:18 pm
@saintlewi,
I switched my contract today without any problems and I asked a bunch of questions. I now have the unlimited voice and text family plan for 2 lines 149.00 amonth and my data plan on my phone 29.99 a month, we were paying 90.00 amonth for 700 minutes shared and unlimited text plus 29.99 for my data plan. so I canceled my home phone wich we never used and that was 40.00 a month
0 Replies
 
saintlewi
 
  1  
Reply Tue 19 Jan, 2010 12:46 am
@cmacv,
right now, after a small discount from work, we are paying about $160-165. thats for our 2 lines of a family plan, 700 minutes, plus two $30 data plans and an extra $10 (i think) for my wife to have navigator. so switching to 149 plus a minor discount might save me some kind of cash. not enough. but hey, its something.
cmacv
 
  1  
Reply Tue 19 Jan, 2010 10:44 am
@saintlewi,
if you can save cash that's sweet but you'll also go from 700 shared minutes to unlimited
0 Replies
 
saintlewi
 
  1  
Reply Wed 20 Jan, 2010 02:21 pm
@cmacv,
So update...the plan we are on didn't change, therefore we are still paying what we were before, for the same stuff. I think veriizon needs to make an family data plan; since me and my wife are both on smart phones and have to pay extra for each phone, it would be nice to have some bundle...then again, i think the guy at the store might have screwed up...hmm...

Either way, same as before. Bummer.
0 Replies
 
saintlewi
 
  1  
Reply Wed 20 Jan, 2010 02:22 pm
@cmacv,
So update...the plan we are on didn't change, therefore we are still paying what we were before, for the same stuff. I think veriizon needs to make an family data plan; since me and my wife are both on smart phones and have to pay extra for each phone, it would be nice to have some bundle...then again, i think the guy at the store might have screwed up...hmm...

Either way, same as before. Bummer.
cmacv
 
  1  
Reply Thu 21 Jan, 2010 02:35 am
@saintlewi,
family plan 149.00 for 2 phones unlimited voice and text, 59.98 unlimited data plans for 2 phones, = $208.98 unlimited everything before your discount? $177.63 after discount plus everything should be unlimited. right?? so it should only cost you $12.00 more a month to go from 700 shared minutes to unlimited
0 Replies
 
 

Related Topics

 
  1. Forums
  2. » verizon lowering prices
Copyright © 2022 MadLab, LLC :: Terms of Service :: Privacy Policy :: Page generated in 0.03 seconds on 01/18/2022 at 05:34:26