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Would you pay $100 a month for wireless?

Posted Feb 20 2008, 03:17 PM by Kim Peterson
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Price war! Two words consumers love to hear. In this case, the war is among wireless carriers unveiling unlimited calling plans for heavy phone users.

Verizon started it all by announcing a $100 plan for unlimited voice. AT&T and T-Mobile USA joined in with similarly-priced plans, but T-Mobile added text messaging as well.

That leaves everyone waiting to hear from Sprint, the last of the big four carriers. UBS telecom analyst John Hodulik thinks Sprint will undercut everyone with an unlimited plan priced at $60-$80 a month. Hodulik thinks Sprint will make the announcement in the next few weeks.

That's got Wall Street in a tizzy, and telecom stocks took a tumble today as analysts slashed their ratings and feared for tough times ahead. A Credit Suisse analyst downgraded the entire sector to "market weight" from "overweight," citing the price war and macroeconomic weakness.

Verizon shares fell today but began a remarkable climb this afternoon, closing down less than 1% to $35.20. AT&T shares dropped 4% to close at $34.29. Sprint shares fell nearly 6% to $8.71.

The big question is how exactly this price war will sway consumers. Most people don't pay anywhere near $100 for wireless service, opting for cheaper plans with limited minutes. Now that the prices of unlimited plans have dropped, will people upgrade so they can talk all they want? Or, will carriers see downgrades by high-spending customers, the ones who previously paid hundreds of dollars a month for unlimited service?

One analyst, Michael Nelson of the Stanford Group, said he thinks downgrades are more likely than upgrades. And that's what's got telecom investors nervous.

Would you want a $100 monthly wireless bill? That's a pretty steep price for the average wireless user. But at least you wouldn't have to worry about going over your minutes. Let me know in the comments. 

Comments

 

$100 for montly wireless service is pretty steep. If you are blessed by having MetroPCS on your urban area, you know that carriers can go lower on their unlimited flat rates. I pay around $60 for my MetroPCS service. It has unlimited voice and texting. I believe it was also unlimited web access but I don't use that as much. They pretty much stay local. The major carriers might argue that MetroPCS only offers limited local coverage. The fact is that the average wireless user does not roam around the nation or the world. Yee, we feel very comfortable that Verizon or AT&T, or the others, can enable us to get calls on the West or East Coast, but just who many of us, actually go to the opposite coast twice a year? Drop it to $50-60 with text messaging included and you got a deal! Just imagine the teen-frenzy as they would be able to text and talk their friends unlimited. They would only have to worry about being able to get to MySpace on their mobile, thus, increasing the sign ups for data plans.

Who doesn't already pay $100 per month? You buy a $40 deal and go over10 minutes and have a roaming charge and you are pretty close. I think that the unlimited deal could be a nail in the coffin for the wired home phones with no features, cost $50 per month for local service plus long distance. Does the cell plan unlimited plan make sense? Duhh!

you would have to take this into consideration; you may have 1 plan, but 3-4-5 phones on that plan.  would the $100 cover all phones or would it be $100 a pop?  many things to consider.....

"Who doesn't already pay $100 per month?"

Millions of users.

The $100 plans are targeted towards the "power user," not the "average user," as the articles state. If your phone bill is always $100 a month, you need to seriously consider how many of the calls are truly necessary (business) and quick family/friends calls, and how many hours are unnecessary, meaningless chatter. (Also consider the amount of time you spend on the phone-- are you making money on business deals, are you connecting with friends within a reasonable time span, or are you wasting valuable minutes/months/years of your life).

For people who have office phones or home phones, there is clearly no need for a $100 plan.

The average consumer, non-business user has absolutely no need to be spending $100 a month for a phone. Hang up, and don't go over talking to buddies.

The average user could save by using VOIP:

$30-40/month for 500 minutes cell phone

$20 per YEAR for UNLIMITED VOIP, local and long-distance with VOIP services like MagicJack and many others.

Total, unlimited home and a basic cell phone plan would then cost less than $500 per year for cell and (unlimited VOIP) home phone.. instead of $1200+ for cell phone alone. Talk about savings, here they are. And, say the person is allowed to use the office phone or can stop yapping on the cell phone-- the projected savings rises even more.

Well, guess what. Verizon pretty much is copying OPEN MOBILE from Puerto Rico. Currently, Open Mobile is offering in PR everything unlimited including messages, internet and all of USA long distance calls for an amazing 55 dollars a month. Maybe Verizon should lower their price to 50 per month to compete effectively with OM in PR since they dominate most of the cell market in PR.

most consumers pay over $100 a month anyway.  Most consumers have their phone that has monthly minute limits and then most people have their second phone which could be like a metro pcs phone service.  even if people only have one phone, more than likely their monthly bill is over or around the $100 mark anyway for limited minutes.  the $100 a month unlimited is a sure sign that phone carriers are competing more with local urban carriers now.

I was just thinking last night how ridiculous this all is. Metro-type phones work for me, I pay less than $60/month with no surprise fees at the end of the month. I text, have internet access (which I don't use), can send pictures and the whole lot. Since I don't travel much out of the area, roaming does no t mean much to me, but I can pay to use the phone someplace else if need be. At home $ 100 can get you phone, cable, and internet, so to pay that for a cell phone it better do a lot more than ring. Technology is costing too much these days. Between the cell phone, internet, and having to buy a couple of new televisions next year, I am not sure all this new fangled stuff is worth the price. We lived without it before, I wish they would get out of my wallet!

This bears a closer look.....this type of pricing, if a little lower will have people shutitng land lines. I pay less than $40. for VOIP and basically can call anywhere...the only catch is mobility. If Cell calling gets to $ 50. unltd it will be cell providers gaining at the expense of non-mobile access..Rogers in particular has significant land line business. I am not sure where the real gain will be. Also...if most calling is done with the phone to the ear, we may get a great test of whether cell signals cause damage ot cell tissue as usage will explode. Maybe time to buy shares in Blutooth Technology

$100 a month. NO WAY!!

I have AT&T now. I switched from T-Mobile when they refused to replace the defective crappy Blackberry. SO I got an iPhone with 5000 mins and I pay like 180.00+ a mo. for everything including unlimited Data. Sure I pay a little more with AT&T than I did with T-Mobile but who cares? ATT&is so much better and the iPhone is great. T-Mobile eat your heart out. T-Mobile blew it and lost a great customer.

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