Wireless carriers are going head-to-head in what is turning out to be a pricing war. The two largest U.S. carriers — AT&T and Verizon Wireless — have cut subscription prices this week.
The first price reduction came from the biggest carrier, Verizon, as the New Jersey-based company cut prices for some of its plans. Beginning Monday, customers could sign up for an unlimited plan that allows calls anywhere in the U.S. for $70 a month, down from $100, or an unlimited talk and text plan for $90 a month, down from $120. Verizon also slashed prices for its family plans, making unlimited talk $120, down from $200, and unlimited talk and text $150, down from $230.
Verizon’s 89 million existing customers are not impacted by the changes unless they want to switch. They can make the change without being penalized or having to extend their contracts.
AT&T, Too
Just after Verizon announced the cuts last week, number-two AT&T with 82 million U.S. customers announced cuts for similar plans, also effective Monday. Instead of smartphone users, including iPhone users, paying $130 a month for AT&T’s unlimited voice and data plan, they will now pay $100. Existing users who make the switch won’t have to pay any fees or extend their contracts.
“We have twice the number of smartphone customers as our nearest competitor, and our new plans reflect customers’ continuing desire to do more with their phones — including talking and browsing the web at the same time,” said Jenny Bridges, an AT&T spokesperson. “In addition, the new plans we’re offering make it even more attractive for customers to choose AT&T.”
The pricing war between the two giants comes a year after smaller wireless carriers, including Deutsche Telekom’s T-Mobile USA and Sprint Nextel’s Boost Mobile, announced lower-cost plans. T-Mobile offers unlimited voice, text and data for…
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