US Mobile Telcos Start Offering Unlimited Plans

February 20th, 2008 at 12:00 am
 


I think Om Malik put it very simply.

"Bottomline: the US mobile industry growth is slowing much faster than previously thought and the only game left for carriers to play: steal business from competitors."

And that’s exactly the case. Yesterday, Verizon announced that they will be offering unlimited plans, while Sprint was still thinking about it.

Faster than you can place a call, T-Mobile joins the party announcing that they too will be releasing some unlimited plans. By this time it was a matter of hours that we expected AT&T to follow. Sure enough they did this morning.

Sprint however has not released any statement yet, which could probably help them since its competitors have already laid their cards. Sprint could make that final adjustment to win.

Anyway, this reminds of something that happened in the Philippines where the mobile market was dominated by two carriers. A third carrier wanted to join in and paralyzed the competition with unlimited prepaid and post-paid plans. In a nutshell, the three networks there now all offer unlimited text and call services.

Back to the US, these unlimited plans are a result of the slowing mobile market in the country. After the carriers try to kill each other with the lowest rates, the situation and prices will normalize.

Now, will Sprint deliver a blow that will make them catch up?