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 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.

Related Entries:

Verizon Wireless' "Unlimited" EVDO Data Plan Is...... - 26 July 2006
Sprint's Unlimited Wireless in San Fran: Future of Mobile Ac... - 16 March 2007
Will Verizon Wireless' Unlimited Plans Trigger Price War? - 19 February 2008
Watch Out for Those Unlimited Plans! - 20 February 2008
The Coming Mobile Price War - 20 February 2008

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