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The Real Reason Behind the Unlimited Plans War

Filed in archive Mobile Technologies , Operators by leo on February 20, 2008

The war has begun! Aside from Verizon Wireless, T-Mobile and AT&T have rolled out their unlimited monthly plans for voice and SMS. Together, these 3 major operators comprise about 65% of wireless customers in the US. They are now ready to collide head-on against small flat-rate players Leap Wireless links

and Metro PCS.

Then again, what triggered this decision to shift from selling buckets of voice minutes to flat-rate scheme? Is it passion to serve their customers better? Envy? Pure generosity? Or a miracle?

No. It's all about MONEY and SURVIVAL. In the words of the Godfather Don Corleone: It's not personal. It's business.

According to a comprehensive and quite entertaining explanation of Telco 2.0, the non-operator voice-enabled applications such as Skype and Google are growing very fast. Thus, selling buckets of minutes may not be a very attractive future due to decreasing margins. The alternative is to divide the bulk product and distribute it in different ways.

The bottom line is that customers are winners this time so never mind the agenda.

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Filed in archive Mobile Technologies , Operators by leo on February 20, 2008

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