Cell Phone Pricing "Shakeup?"

After cell phone pricing has been fairly stable for a while, today the "big four" all announced a new cell phone plan of $99 for unlimited voice minutes in a month. While Verizon started it, before we could even digest it, AT&T, Sprint and T-Mobile jumped on board this mobile all-you-can-eat bandwagon. However, I think they really had to do this, and it's not really that great of a deal as they face increased competition.

Firstly, while the trend for a while was to dump our landlines, not too many more have followed the trend. I keep my landline mostly for incoming calls, and local calls. Also, with triple play offerings, and unlimited domestic long distance for around $30 monthly, only those always on the move will need that many cell phone minutes.

Next, the VoIP services have gained traction. The likes of Vonage for $25 monthly for their unlimited residential plan put the cell carriers to shame. T-Mobile's Hot Spot at Home for $10 monthly turns the T-Mobile phone into a virtually unlimited account with a little planning. Also, let's not forget the popular SkypeOut service which is an affordable $3 monthly for unlimited domestic long distance.

The cell carriers are also facing increased competition from more regional carriers. Helio is offering a nationwide plan of $99 with its trendy devices (as an aside, they need to market this better as I had heard of the devices but didn't know they were a service as well). Ever hear about Cricket? They have unlimited regional plans for $45 to $60 depending on the other features. Or how about MetroPCS' $35 monthly unlimited plan that is only in limited areas?

Finally, many users, such as me, are frustrated by the lack of affordable plans. I never use all my minutes, and have been waiting for the day to cancel with T-Mobile. Others have turned to prepaid phones with $100 annual cards that should more than cover light phone usage, and not break the bank. While prepaid phones were once only for those with mediocre credit, others are turning to them for more affordable options as the low cost plans have mostly disappeared from the mainstream carriers.

So, now you can see that a $100 monthly all-you-can-talk plan is not really that great a deal when you really think about it. The big four phone companies are facing increasing competition on all sides in a somewhat saturated market. While they each thought this would set them apart, they look quite the same once again.

Jonas