God Bless America.
Verizon Wireless, not known for its innovative marketing or sales efforts, is offering a series of unlimited (and we do mean unlimited) wireless calling plans that range from US$99 to US$199 beginning today.
The most appealing of the plans, from the perspective of a Canadian who travels in country and is tired of paying out-of-province data and calling rates, looks to be the US$149 plan. It gives subscribers an unlimited number of calls or messages (e.g. SMS, e-mail) in the U.S.
If such a plan was offered in Canada a person, such as myself, could avoid the $0.30 a minute incurred for a phone call example, when traveling outside one’s designated area code and predict monthly cell phone costs.
These types of plans aren’t uncommon in the U.S. MetroPCS and Leap Wireless, for example, have offered flat-rate plans for years that include messaging. However, its networks only cover parts of the country, unlike Verizon which has a national network. This makes the addition of unlimited messaging/data in the Verizon flat-rate plans somewhat unique.
It also shows the competitive pressure Verizon is under now. Its GSM network competitors have the momentum as these companies typically offer a better selection of handsets, namely the iPhone, which is offered by AT&T Wireless in the U.S. Verizon operates a network based on the CDMA standard, which leaves it and competitor Sprint Nextel at a competitive disadvantage versus AT&T Wireless and T-Mobile. Bell Canada and Telus own and operate CDMA networks in Canada and have some of the same competitive challenges.
All wireless data users in Canada will appreciate the fact Verizon has also lifted the 5GB data cap that previously hung over the heads of its wireless data users. The wireless carriers here, of course, afford its users no such privilege, mainly because they haven’t had to + the economics of such an offer aren’t as attractive.
Nonetheless, expect to see unlimited calling plans much like the ones offered by Verizon here in Canada over the next two to three years if not sooner.
If Rogers keeps pulling away from the pack like it’s done recently and additional competitors enter the field as expected post-spectrum auction this year, these types of plans may be offered in Canada sooner rather than later.
3 Comments on “Verizon’s unlimited wireless plans start today”
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Pat Phelan has an interesting take on the Verizon plan (http://patphelan.net/verizon-takes-first-step-in-race-to-bottom/). Not sure if he’s right that it’s a race to the bottom, but it will be interesting to see how these kinds of plans get packaged up in a way that doesn’t erode ARPU.
Posted on February 20, 2008 at 8:08 am.
Hi Dan,
Thanks for the link – that’s an interesting perspective indeed.
I agree with you that it’s not a race to the bottom. Prices do have room to fall as new subscribers are harder to find and carriers look to poach customers from others.
One need only look to the landline operations of fixed-line carriers for precedent. Carriers will hold the line on prices even in the face of intense competition.
Kevin
Posted on February 20, 2008 at 3:03 pm.
» Wireless users worry not - prices may yet fall (but not for long) Kevin Restivo’s Tech Blog: Thoughts on the Wireless and Consumer Markets says:
[...] week, Verizon introduced a plan that allows subscribers to talk all they want – AT&T and T-Mobile quickly followed suit. The plans are designed to lure people away from their [...]
Posted on February 25, 2008 at 3:34 am.