Verizon, AT&T slash prices

18 Jan 2010

Verizon Wireless and AT&T Mobility, the two largest operators by subscribers in the US mobile market, have announced price cuts of up to 30% as a price war amongst cellcos gathers pace, FT.com reports. Both companies are replacing their USD100 per month unlimited voice plans with USD70 per month alternatives in response to the success experienced by low cost pre-paid operators such as TracFone and MetroPCS, which offer similar deals for as little as USD50 per month. Verizon Wireless described the changes as an attempt to simplify its pricing structure while boosting market share, and subsequently dropped 26 mobile plans altogether. Lowell McAdam, Verizon Wireless chief executive, said: ‘When we see an opportunity to gain market share and do it profitably, we are going to do it.’ Verizon also announced changes in its mobile data plans, increasing charges for heavy data users and requiring all 3G phone users to sign up for a USD10 per month data plan.