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AT&T, Verizon, Sprint, T-Mobile:
Two weeks ago, Verizon Wireless was the first major U.S. wireless operator to announce a $99.99 unlimited voice plan. Within days, AT&T and T-Mobile followed with their own plans. And last week, Sprint Nextel announced its plan, which also includes unlimited data and a slew of premium wireless services.
These new plans naturally appeal to today's heaviest cell phone users. Road warriors who are constantly on their cell phones and who consistently go over their allotted minutes every month will be among the first people to sign up for these plans. But the services could also appeal to a much wider group of consumers looking to consolidate their communications bills by cutting the cord on their home phone.
"These new plans give consumers a much more realistic option for cutting the cord on the home phone," said Roger Entner, senior vice president at IAG Research. "Besides voice services are going wireless anyway. Even if you have a phone at home it's likely cordless. And if you're like me you have your home phone or office phone ring through to your cell because it's always with you."
The trend to cut the cord is already well-established. Over 12.8 percent of U.S. households today use a cell phone instead of a traditional wireline phone in their home, according to the CTIA, the wireless industry's trade organization. This is up from 7.7 percent in June of 2005.
Cable operators have also been putting pressure on local phone companies by offering their own version of residential telephony service, which they bundle with Internet and TV services. The phone companies have fought back by offering their own bundles. Verizon and AT&T have even upgraded their networks to start offering their own TV services.
As a result, phone companies have seen rapid declines in traditional land lines. Qwest Communications, which operates in 14 states, lost a total of 738,000 phone lines in 2007. [LOL]
But with nearly 85 percent of the U.S. population now owning a cell phone, it makes more sense for people to simply cut the cord than sign up for home phone service from a cable operator. While the cable companies' phone service offers some enhanced telephony features that the traditional phone companies don't offer. Cell phones offer complete mobility, something neither local phone companies nor cable operators offer.
But until now consumers looking to cut the cord had to be careful about using more than their allotted amount of voice minutes. These new unlimited plans put those fears to rest.
http://www.news.com/8301-10784_3-9884689-7.html?part=dht&tag=nl.e703
Infrastructure in, let the price wars begin.
It will be great when WalMart starts selling fuel for cars! Competition works. Period.
