The latest competition strategy amongst cell phone providers is Unlimited Mobile Plans. Meant to give customers "all you can use" service at one convenient flat rate, these plans are not necessarily the best deal.
Cellphone Carriers Test All-You-Can-Talk Menus
By: Brad StoneNew York Times
Published: February 21, 2008
A PRICE war among cellphone carriers is giving users a chance to stop counting their minutes.
In recent days, three large cellphone companies in the United States have introduced unlimited calling plans for $99 a month, a departure from the industry’s longstanding approach of charging customers for each minute used over a monthly allotment.
The moves, by Verizon, AT&T and T-Mobile, are meant to turn cellphone use into an activity covered by a single predictable fee, like watching cable television. Sprint, the nation’s third-largest carrier, says it is testing fixed-rate plans in four cities and evaluating its own nationwide flat-rate offering.
The industry’s sudden fixation with flat-rate pricing speaks to the toll wrought by furious competition. As the wireless carriers jockey for a stagnating pool of customers and focus on building broadband data networks to support e-mail and Web browsing, rates for voice calls are dropping and generating less revenue. The new plans also demonstrate how difficult it is for the carriers to distinguish themselves on price....
The new $99 plans are not necessarily a good deal. An average consumer spends $63 to $77 for cellphone service, depending on the addition of data services like e-mail, according to a study by J. D. Power & Associates.
Instead, the fixed-rate plans are aiming for the small yet valuable group of customers who make lots of daytime calls....
http://www.nytimes.com/2008/02/21/business/21place.html?_r=1&ref=technology&oref=slogin
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